Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help me! Required: Prepare a corrected, classified balance sheet. Use the additional information to help determine appropriate classifications and accou balances. The cost of

please help me!
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Required: Prepare a corrected, classified balance sheet. Use the additional information to help determine appropriate classifications and accou 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|c|c|c|} \hline Total assets & & $ & 314,000 \\ \hline \multicolumn{4}{|c|}{ Liabilities and Shareholders' Equity } \\ \hline \multicolumn{4}{|l|}{ Current liabilities: } \\ \hline Accounts payable & & $ & 88,000 \\ \hline Interest payable & & & 24,000 \\ \hline Notes payable & & & 69,000 \\ \hline Total current liabilities & & & 181,000 \\ \hline \multicolumn{4}{|l|}{ Long-term liabilities: } \\ \hline Bonds payable & & & 129,000 \\ \hline \begin{tabular}{|c|} Total liabilities \\ \end{tabular} & & & 310,000 \\ \hline \multicolumn{4}{|l|}{ Shareholders' equity: } \\ \hline Common stock & 89,000 & & \\ \hline Retained earnings & 54,000 & & \\ \hline Total shareholders' equity & & & 143,000 \\ \hline Total liabilities and shareholders' equity & & $ & 453,000 \\ \hline \end{tabular} 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 $39,000 restricted amount to be used for repayment of the bonds payable in 2028 . 2. The cost of the machinery is $228,000. 3. Accounts receivable includes a $39,000 notes receivable from a customer due in 2027. 4. The notes payable balance includes accrued interest of $24,000. 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 $54,000. 6. 69,000 shares of no par common stock were issued in 2019.200,000 shares are authorized. 2 1.5 points Mc

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Why CISOs Fail Security Audit And Leadership Series

Authors: Barak Engel

2nd Edition

1032299258, 978-1032299259

More Books

Students also viewed these Accounting questions