The following balance sheet for the Los Gatos Corporation was prepared by a recently hired accountant. In reviewing the statement you notice several errors.

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 40,000 Cash Accounts receivable 80,000 Inventories 55,000 120,000 Machinery (net) Franchise (net) 30,000 Total assets $325,000 Liabilities and Shareholders' Equity 50,000 Accounts payable Allowance for uncollectible accounts 5,000 Note payable 55,000 Bonds payable 110,000 105,000 Shareholders' equity Total liabilities and shareholders' equity $325,000 Additional information: 1. Cash includes a $20,000 restricted amount to be used for repayment of the bonds payable in 2020. 2. The cost of the machinery is $190,000 3. Accounts receivable includes a $20,000 note receivable from a customer due in 2019 4. The note payable includes accrued interest of $5,000. 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 $35,000 6. 50,000 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.)