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 Cash Accounts receivable Inventories Machinery (net) Franchise (net) $ 46,000 89,000 58,000 123,000 33,000 Total assets $349,000 Liabilities and Shareholders Equity Accounts payable Allowance for uncollectible accounts Note payable Bonds payable Shareholders equity S 56,000 8,000 61,000 113,000 111,000 otal liabilities and shareholders equity $349,000 Additional information: 1. Cash includes a $23,000 restricted amount to be used for repayment of the bonds payable in 20 2 The cost of the machinery is $196,000 3. Accounts receivable includes a $23,000 note receivable from a customer due in 2019 4. The note payable includes accrued interest of $8,000. 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 $38,000 6. 53,000 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.) LOS GATOS CORPORATION Balance Sheet
