The following balance sheet for the Los Gatos Corporation was prepared by a recently hired accountant. In reviewing the statement you notice several errors. Cash Accounts receivable Inventories Machinery (net) Franchise (net). Total assets LOS GATOS CORPORATION Balance Sheet At December 31, 2018 Assets Liabilities and Shareholders' Equity. Accounts payable Allowance for uncollectible accounts Note payable Bonds payable $ 80,000 140,000 75,000 140,000 50,000 $485,000 $ 90,000 25,000 95,000 130,000 145,000 Total liabilities and shareholders' equity $485,000 es Shareholders' equity Additional information: 1. Cash includes a $40,000 restricted amount to be used for repayment of the bonds payable in 2022. 2. The cost of the machinery is $230,000. 3. Accounts receivable includes a $40,000 note receivable from a customer due in 2021. 4. The note payable includes accrued interest of $25,000. Principal and interest are both due on February 1, 2019. 5. The company began operations in 2013. Income less dividends since inception of the company totals $55,000. 6. 70,000 shares of no par common stock were issued in 2013. 200,000 shares are authorized.