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 Inventory Machinery (net) Franchise (net) Total assets LOS GATOS CORPORATION Balance Sheet At December 31, 2024 Assets Notes payable Bonds payable Liabilities and Shareholders' Equity Accounts payable Allowance for uncollectible accounts 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: 1. Cash includes a $20,000 restricted amount to be used for repayment of the bonds payable in 2028. 2. The cost of the machinery is $190,000. 3. Accounts receivable includes a $20,000 notes receivable from a customer due in 2027. 4. The notes payable balance includes accrued interest of $5,000. Principal and interest are both due on February 1, 2025. 5. The company began operations in 2019. Net income less dividends since inception of the company totals $35,000. 6. 50,000 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 sian.

The following balance sheet for the Los Gatos Corporation was prepared by a recently hired accountant. In reviewing the statemeint jou notice several errors. Additional Information: 1. Cash includes a $20.000 restricted amount to be used for repayment of the bonds payable in 2028 2. The cost of the machinery is $190,000, 3. Accounts recelvable includes a $20,000 notes recelvable from a customer due in 2027. 4. The notes payable balance includes accrued interest of $5,000. Principal and interest are both due on February 1, 2025. 5. The company began operations in 2019 . Net income less dividends since inception of the company totals $35,000. 6. 50.000 shares of no par common stock were issued in 2019.100,000 shares are authorized. Required: Required: Prepare a corrected, classificd balance sheet. Use the additonal information to heip determine appropriate classifications and account balances. The cost of machinery and its accumulated depreciation are shown separately, Note: Amounts to be deducted should be indicoted bv a minus sian