Answered step by step
Verified Expert Solution
Question
1 Approved Answer
what am i missing or entering wrong on balance sheet? The following balance sheet for the Los Gatos Corporation was prepared by a recently hired
what am i missing or entering wrong on balance sheet?
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, 2021 Assets Cash $ 68,000 Accounts receivable 122,880 Inventory 69,000 Machinery (net) 134, eee Franchise (net) 44,830 Total assets $ 437,000 Liabilities and Shareholders' Equity Accounts payable $ 78,880 Allowance for uncollectible accounts 19,000 Notes payable 83,000 Bonds payable 124,000 Shareholders' equity 133,00 Total liabilities and shareholders' equity $437,000 Additional Information: och includes $300 restricter amount to be used for repayment of the bonds cavable in 2025 Additional Information: 1 Cash includes a $34.000 restricted amount to be used for repayment of the bonds payable in 2025 2. The cost of the machinery is $218,000 3. Accounts receivable includes a $34,000 notes receivable from a customer due in 2024 4. The notes payable balance includes accrued interest of $19,000. Principal and interest are both due on February 1, 2022 5. The company began operations in 2016. Net income less dividends since inception of the company totals $49,000. 6. 64,000 shares of no par common stock were issued in 2016. 200,000 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. (Amounts to be deducted should be indicated by a minus sign.) Answer is not complete. LOS GATOS CORPORATION Balance Sheet At December 31, 2021 Assets Current assets Cash $ 34,000 LOS GATOS CORPORATION Balance Sheet At December 31, 2021 Assets Current assets: Cash Accounts receivable $ 34,000 69,000 > 69,000 69,000 172,000 Net accounts receivablo Inventory Total current assets Investments: Restricted cash Notes receivable 34,000 34,000 68,000 Total investments Property, plant, and equipment: Machinery Accumulated depreciation 218,000 (84000) 134,000 Net property, plant, and equipment Intangible assets: Franchise (net) 44,000 S 418,000 Total assets Liabilities and Shareholders' Equity $ Current liabilities: Accounts payable Interest payable Notes payable 78,000 19,000 64,000 161,000 Total current liabilities Long-term liabilities: Bonds payable 124,000 285,000 Total liabilities Shareholders' equity: Common stock Retained earnings 84,000 49,000 Interest payable Notes payable 19,000 64.000 161,000 Total current liabilities Long-term liabilities: Bonds payable 124,000 285,000 Total liabilities Shareholders' equity: Common stock Retained earnings $ 84,000 49,000 Total shareholders' equity Total liabilities and shareholders' equity 133,000 $ 418,000 Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started