Exercise 3-7 (Algo) Balance sheet preparation; errors [LO3-2, 3-3] The following balance sheet for the Los Gatos Corporation was prepared by a recently hired accountant. In reviewing the statement you notice several errors. Additional Information: 1. Cash includes a $34,000 restricted amount to be used for repayment of the bonds payable in 2028 . 2. The cost of the machinery is $218,000. 3. Accounts receivable includes a $34,000 notes receivable from a customer due in 2027. 4. The notes payable balance includes accrued interest of $19,000. Principal and interest are both due on February 1, 2025. 5. The company began operations in 2019 . Net income less dividends since inception of the company totals $49,000. 6. 64,000 shares of no par common stock were issued in 2019. 200,000 shares are authorized. Required: Prepare a corrected, classified balance sheet. Use the additional information to help determine appropriate classifications and account balances. The cost of machinery and its accumulated depreciation are shown separately. Note: Amounts to be deducted should be indicated by a minus sign. \begin{tabular}{|c|r|r|} \hline \multicolumn{2}{|c|}{ Liabilities and Shareholders' Equity } & \\ \hline Current liabilities: & & \\ \hline & & \\ \hline & & \\ \hline Total current liabilities & & \\ \hline Long-term liabilities: & & \\ \hline & & \\ \hline Total liabilities & & \\ \hline Shareholders' equity: & & \\ \hline & & \\ \hline \hline & & \\ \hline Total shareholders' equity & & \\ \hline Total liabilities and shareholders' equity & & \\ \hline \end{tabular} \begin{tabular}{|l|r|r|} \hline \multicolumn{2}{|c|}{ LOS GATOS CORPORATION } \\ \hline \multicolumn{2}{|c|}{ At December 31, 2024 } \\ \hline \multicolumn{2}{|c|}{ Assets } & \$ \\ \hline Current assets: & \$ 88,000 & \\ \hline Cash & (19,000) & \\ \hline Accounts receivable & & \\ \hline Allowance for uncollectible accounts & & 69,000 \\ \hline Net accounts receivable & & 69,000 \\ \hline Inventory & & 172,000 \\ \hline Total current assets & & \\ \hline Investments: & & \\ \hline Notes receivable & & \\ \hline Machinery & & \\ \hline Property, plant, and equipment: & & \\ \hline & & \\ \hline & & \\ \hline Net property, plant, and equipment & \\ \hline Intangible assets: & & \\ \hline & & \\ \hline & & \\ \hline Other assets: & & \\ \hline & & \\ \hline & & \\ \hline \end{tabular}