The following balance sheet for the Los Gatos Corporation was prepared by a recently hired accountant. In reviewing the statement you notice several errors. 28 LOS GATOS CORPORATION Balance Sheet At December 31, 2021 Assets Cash Accounts receivable Inventory Machinery (net) Franchise (net) Total assets Liabilities and Shareholders' Equity Accounts payable Allowance for uncollectible accounts Notes payable Bonds payable Shareholders' equity Total liabilities and shareholders' equity $ 40,000 80,000 55,000 120,000 30,000 $325,000 $ 50,000 5,000 55,000 110,000 105,000 $325,000 Additional Information: Ret 1. Cash includes a $20,000 restricted amount to be used for repayment of the bonds payable in 2025. 2. The cost of the machinery is $190,000. 3. Accounts receivable includes a $20,000 notes receivable from a customer due in 2024. 4. The notes payable balance includes accrued interest of $5,000. 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 totals $35,000. 6.50,000 shares of no par common stock were issued in 2016.100,000 shares are authorized. 2:07 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. (Amounts to be deducted should be indicated by a minus sign.) Answer is not complete. LOS GATOS CORPORATION Balance Sheet At December 31, 2021 Assets Current assets LUDOVUI VIVIR Balance Sheet At December 31, 2021 Assets 20,000 Current assets Cash Accounts receivable Inventory Net accounts receivable $ $ 55,000 X 55,000 110,000 130,000 Total current assets Investments Restricted cash Notes receivable $ 20,000 20.000 Total investments Property, plant, and equipment Machinery 40.000 190.000 ANA Property, plant, and equipment: Machinery Accumulated depreciation Net property, plant, and equipment Intangible assets: Franchise (net) 190,000 (70,000) 120,000 30,000 Total assets 320,000 Liabilities and Shareholders' Equity Current liabilities: Accounts payable Notes payable Interest payable 50,000 50,000 5,000 Total current liabilities Long-term liabilities: Bonds payable 105,000 110,000 arch W X Interest payable 5,000 105,000 Total current liabilities Long-term liabilities: Bonds payable 110,000 215,000 Total liabilities Shareholders' equity: Common stock Retained earnings $ 70,000 35,000 Total shareholders' equity Total liabilities and shareholders' equity 105,000 $ 320,000