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, 2018 Assets Cash $ 70,000 Accounts receivable 125,000 Inventories 70,000 Machinery (net) 135,000 Franchise (net) 45,000 Total assets $ 445,000 Liabilities and Shareholders Equity Accounts payable $ 80,000 Allowance for uncollectible accounts 20,000 Note payable 85,000 Bonds payable 125,000 Shareholders equity 135,000 Total liabilities and shareholders equity $ 445,000

Additional information: Cash includes a $35,000 restricted amount to be used for repayment of the bonds payable in 2022. The cost of the machinery is $220,000. Accounts receivable includes a $35,000 note receivable from a customer due in 2021. The note payable includes accrued interest of $20,000. Principal and interest are both due on February 1, 2019. The company began operations in 2013. Income less dividends since inception of the company totals $50,000. 65,000 shares of no par common stock were issued in 2013. 100,000 shares are authorized. Required: Prepare a corrected, classified balance sheet. (Amounts to be deducted should be indicated by a minus sign.)