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 $31,2024$

Assets

Cash $ $70,000$

Accounts receivable $125,000$

Inventory $70,000$

Machinery $($net$)135,000$

Franchise $($net$)45,000$

Total assets $ $445,000$

Liabilities and Shareholders$$ Equity

Accounts payable $ $80,000$

Allowance for uncollectible accounts $20,000$

Notes 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 $2028.$

The cost of the machinery is $$220,000.$

Accounts receivable includes a $$35,000$ notes receivable from a customer due in $2027.$

The notes payable balance includes accrued interest of $$20,000.$ Principal and interest are both due on February $1,2025.$

The company began operations in $2019.$ Net income less dividends since inception of the company totals $$50,000.$

$65,000$ shares of no par common stock were issued in $2019.100,000$ shares are authorized.

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.

Note: Amounts to be deducted should be indicated by a minus sign.