In: Accounting
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 | $ | 78,000 | |
Accounts receivable | 137,000 | ||
Inventories | 74,000 | ||
Machinery (net) | 139,000 | ||
Franchise (net) | 49,000 | ||
Total assets | $ | 477,000 | |
Liabilities and Shareholders’ Equity | |||
Accounts payable | $ | 88,000 | |
Allowance for uncollectible accounts | 24,000 | ||
Note payable | 93,000 | ||
Bonds payable | 129,000 | ||
Shareholders’ equity | 143,000 | ||
Total liabilities and shareholders’ equity | $ | 477,000 | |
Additional information:
Required:
Prepare a corrected, classified balance sheet.
(Amounts to be deducted should be indicated by a
minus sign.)