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Exercise 3 - 7 ( Static ) Balance sheet preparation; errors [ LO 3 - 2 , 3 - 3 ] The following balance sheet
Exercise Static Balance sheet preparation; errors LO
The following balance sheet for the Los Gatos Corporation was prepared by a recently hired accountant. In revlewing the statement
you notice several errors.
Additional Information:
Cash Includes a $ restricted amount to be used for repayment of the bonds payable in
The cost of the machinery is $
Accounts recelvable Includes a $ notes recelvable from a customer due in
The notes payable balance Includes accrued interest of $ Principal and Interest are both due on February
The company began operations In Net Income less dividends since inception of the company totals $
shares of no par common stock were issued in shares are authorized.
Required:
Prepare a corrected, classified balance sheet. Use the additional Information to help determine approprlate classlfications and account
balances. The cost of machinery and Its accumulated depreclation are shown separately.
Note: Amounts to be deducted should be Indlcated by a minus sign.
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