exercise 3-7 (algo) balance sheet preparation; errors [LO3-2,3-3]

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 LOS GATOS CORPORATION balance sheet at December 1 2021 OOR 92.05 $9.000 124,000 30,000 Cash Account Tocovable Inventory Machinery (net) Pranchise (net) Total eta Liabilities and shareholders Equity Accounts payable allowance for uncollectible counts Notes payable Bonde payable Shareholders equity Total liabilities and shareholders equity 58.400 9,055 63,008 16,00 133,050 5337,000 Additional information 1 Cash includes a $24.000 restricted amount to be used for repayment of the bonds payable in 2025 2. The cost of the machinery is $198.000. 3 Accounts receivable includes a $24,000 notes receivable from a customer due 2024 4. The notes payable balance includes accrued interest of 59.000, Principal and interest are both due on February 1 2022 5. The company began operations in 2016. Net income less dividends since inception of the company totais $39.000. 6.54,000 shores of no par common stock were issued in 2015.100.000 shares are authorized Required: Prepare a corrected, classified balance sheet. Use the additional Information to hep determine appropriate classifications and account balances. The cost of machinery and its accumulated depreciation are shown separately Amounts to be deducted should be Indicated by a minus sign.) LOS GATOS CORPORATION Balance sheet Al December 31, 2021 Assets Ourrent assets: Nel counts receivable Total current assets Investments Total investments LOS GATOS CORPORATION Balance Sheet At December 31, 2021 Assets Current assots Nel accounts receivable Total current assets Investments Total investments Property, plant and equipment: Net property, plant, and equipment Intangible assets Total assets Llabilities and Shareholders' Equity Current liabilities: Total current liabilities Long-term abilities Total liabilities Shareholders equity 0 Total shareholders' equity Total liabilities and shareholders' equity O