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 31, 2016 Assets Cash $ 80,000 Accounts receivable 140,000 Inventories 75,000 Machinery (net) 140,000 Franchise (net) 50,000 Total assets $ 485,000 Liabilities and Shareholders Equity Accounts payable $ 90,000 Allowance for uncollectible accounts 25,000 Note payable 95,000 Bonds payable 130,000 Shareholders equity 145,000 Total liabilities and shareholders equity $ 485,000 Additional information: 1. Cash includes a $40,000 restricted amount to be used for repayment of the bonds payable in 2020. 2. The cost of the machinery is $230,000. 3. Accounts receivable includes a $40,000 note receivable from a customer due in 2019. 4. The note payable includes accrued interest of $25,000. Principal and interest are both due on February 1, 2017. 5. The company began operations in 2011. Income less dividends since inception of the company totals $55,000. 6. 70,000 shares of no par common stock were issued in 2011. 200,000 shares are authorized. Required: Prepare a corrected, classified balance sheet. (Amounts to be deducted should be indicated by a minus sign.)