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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

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 $ 58,000
Accounts receivable 107,000
Inventories 64,000
Machinery (net) 129,000
Franchise (net) 39,000
Total assets $ 397,000
Liabilities and Shareholders Equity
Accounts payable $ 68,000
Allowance for uncollectible accounts 14,000
Note payable 73,000
Bonds payable 119,000
Shareholders equity 123,000
Total liabilities and shareholders equity $ 397,000

Additional information:
1.

Cash includes a $29,000 restricted amount to be used for repayment of the bonds payable in 2020.

2. The cost of the machinery is $208,000.
3. Accounts receivable includes a $29,000 note receivable from a customer due in 2019.
4.

The note payable includes accrued interest of $14,000. 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 $44,000.

6.

59,000 shares of no par common stock were issued in 2011. 100,000 shares are authorized.

Required:

Prepare a corrected, classified balance sheet. (Amounts to be deducted should be indicated by a minus sign.)

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