Question: the following balance sheet for the los gatos corporation was...
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|
|At December 31, 2018|
|Liabilities and Shareholders’ Equity|
|Allowance for uncollectible accounts||24,000|
|Total liabilities and shareholders’ equity||$||477,000|
- Cash includes a $39,000 restricted amount to be used for repayment of the bonds payable in 2022.
- The cost of the machinery is $228,000.
- Accounts receivable includes a $39,000 note receivable from a customer due in 2021.
- The note payable includes accrued interest of $24,000. 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 $54,000.
- 69,000 shares of no par common stock were issued in 2013. 200,000 shares are authorized.
Prepare a corrected, classified balance sheet. (Amounts to be deducted should be indicated by a minus sign.)