Question

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, 2018 Assets Cash $ 66,000 Accounts receivable 119,000 Inventories 68,000 Machinery (net) 133,000 Franchise (net) 43,000 Total assets $ 429,000 Liabilities and Shareholders’ Equity Accounts payable $ 76,000 Allowance for uncollectible accounts 18,000 Note payable 81,000 Bonds payable 123,000 Shareholders’ equity 131,000 Total liabilities and shareholders’ equity $ 429,000 Additional information: Cash includes a $33,000 restricted amount to be used for repayment of the bonds payable in 2022. The cost of the machinery is $216,000. Accounts receivable includes a $33,000 note receivable from a customer due in 2021. The note payable includes accrued interest of $18,000. Principal and interest are both due on February 1, 2019. The company began operations in 2013. Income less dividends since inception of the company totals $48,000. 63,000 shares of no par common stock were issued in 2013. 100,000 shares are authorized. Required: Prepare a corrected, classified balance sheet. (Amounts to be deducted should be indicated by a minus sign.) Next Visit question mapQuestion 4 of 6 Total 4 of 6 Prev

Answer 1