The following balance sheet for the Los Gatos Corporation was prepared by a recently hired...
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Accounting
The following balance sheet for the Los Gatos Corporation was prepared by a recently hired accountant. In revlewing the statement. you notlce several errors. Adiditional information: 1. Cash includes a $20,000 restricted amount to be used for repayment of the bonds payable in 2025. 2. The cost of the machinery is $190,000. 3. Accounts recelvable includes a $20,000 notes recelvable from a customer due in 2024. 4. The notes payable balance Includes accrued Interest of $5,000. Principal and interest are both due on February 1,2022. 5. The company began operations In 2016 . Net Income less dividends since inceptlon of the company totals $35,000. 6. 50,000 shares of no par common stock were issued in 2016.100,000 shares are authorlzed. Required: Prepare a corrected, classified balance sheet. Use the additional Information to help determine approprlate classifications and account balances. The cost of machinery and its accumulated depreclation are shown separately. (Amounts to be deducted should be Indicated by a minus sign.)
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