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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.) The following balance sheet for the Los Gatos Corporation was prepared by a recently hired accountant. In reviewing the statement you notice several errors. Additional Information: 1. Cash includes a $40,000 restricted amount to be used for repayment of the bonds payable in 2025 . 2. The cost of the machinery is $230,000. 3. Accounts receivable includes a $40,000 notes recelvable from a customer due in 2024. 4. The notes payable balance includes accrued interest of $25,000. 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 $55,000. 6. 70,000 shares of no par common stock were issued in 2016.200,000 shares are authorized. \begin{tabular}{|c|c|c|} \hline Accumulated depreciation & & \\ \hline Net property, plant, and equipment & & 0 \\ \hline \multicolumn{3}{|l|}{ Intangible assets: } \\ \hline Franchise (net) & & \\ \hline Total assets & & $15,000 \\ \hline \multicolumn{3}{|c|}{ Liabilities and Shareholders' Equity } \\ \hline \multicolumn{3}{|l|}{ Current liabilities: } \\ \hline Accounts payable & & \\ \hline Interest payable & & \\ \hline Notes payable & 4 & \\ \hline Total current liabilities & & 0 \\ \hline \multicolumn{3}{|l|}{ Long-term liabilities: } \\ \hline Bonds payable & & \\ \hline Total liabilities & & 0 \\ \hline \multicolumn{3}{|l|}{ Shareholders' equity: } \\ \hline Common stock & & \\ \hline Retained earnings & & \\ \hline Total shareholders' equity & & 0 \\ \hline Total liabilities and shareholders' equity & & 0 \\ \hline \end{tabular}

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