The following balance sheet for the Los Gatos Corporation wasprepared by a recently hired accountant. In reviewing the statementyou notice several errors.
LOS GATOS CORPORATION Balance Sheet AtDecember 31, 2018 Assets Cash $ 72,000 Accounts receivable 128,000 Inventories 71,000 Machinery (net) 136,000 Franchise (net) 46,000 Total assets $ 453,000 Liabilitiesand Shareholdersâ Equity Accounts payable $ 82,000 Allowance for uncollectibleaccounts 21,000 Note payable 87,000 Bonds payable 126,000 Shareholdersâ equity 137,000 Total liabilities andshareholdersâ equity $ 453,000
Additional information:
Cash includes a $36,000 restricted amount to be used forrepayment of the bonds payable in 2022.
The cost of the machinery is $222,000.
Accounts receivable includes a $36,000 note receivable from acustomer due in 2021.
The note payable includes accrued interest of $21,000. Principaland interest are both due on February 1, 2019.
The company began operations in 2013. Income less dividendssince inception of the company totals $51,000.
66,000 shares of no par common stock were issued in 2013.200,000 shares are authorized.
Required:
Prepare a corrected, classified balance sheet. (Amounts tobe deducted should be indicated by a minus sign.)
The following balance sheet for the Los Gatos Corporation wasprepared by a recently hired accountant. In reviewing the statementyou notice several errors.
| LOS GATOS CORPORATION | |||
| Balance Sheet | |||
| AtDecember 31, 2018 | |||
| Assets | |||
| Cash | $ | 72,000 | |
| Accounts receivable | 128,000 | ||
| Inventories | 71,000 | ||
| Machinery (net) | 136,000 | ||
| Franchise (net) | 46,000 | ||
| Total assets | $ | 453,000 | |
| Liabilitiesand Shareholdersâ Equity | |||
| Accounts payable | $ | 82,000 | |
| Allowance for uncollectibleaccounts | 21,000 | ||
| Note payable | 87,000 | ||
| Bonds payable | 126,000 | ||
| Shareholdersâ equity | 137,000 | ||
| Total liabilities andshareholdersâ equity | $ | 453,000 | |
Additional information:
Cash includes a $36,000 restricted amount to be used forrepayment of the bonds payable in 2022.
The cost of the machinery is $222,000.
Accounts receivable includes a $36,000 note receivable from acustomer due in 2021.
The note payable includes accrued interest of $21,000. Principaland interest are both due on February 1, 2019.
The company began operations in 2013. Income less dividendssince inception of the company totals $51,000.
66,000 shares of no par common stock were issued in 2013.200,000 shares are authorized.
Required:
Prepare a corrected, classified balance sheet. (Amounts tobe deducted should be indicated by a minus sign.)
Related questions
The following balance sheet for the Los Gatos Corporation wasprepared by a recently hired accountant. In reviewing the statementyou notice several errors.
| LOS GATOS CORPORATION | |||
| Balance Sheet | |||
| AtDecember 31, 2018 | |||
| Assets | |||
| Cash | $ | 74,000 | |
| Accountsreceivable | 131,000 | ||
| Inventories | 72,000 | ||
| Machinery(net) | 137,000 | ||
| Franchise(net) | 47,000 | ||
| Totalassets | $ | 461,000 | |
| Liabilitiesand Shareholdersâ Equity | |||
| Accountspayable | $ | 84,000 | |
| Allowance foruncollectible accounts | 22,000 | ||
| Notepayable | 89,000 | ||
| Bondspayable | 127,000 | ||
| Shareholdersâequity | 139,000 | ||
| Totalliabilities and shareholdersâ equity | $ | 461,000 | |
Additional information:
Cash includes a $37,000 restricted amount to be used forrepayment of the bonds payable in 2022.
The cost of the machinery is $224,000.
Accounts receivable includes a $37,000 note receivable from acustomer due in 2021.
The note payable includes accrued interest of $22,000. Principaland interest are both due on February 1, 2019.
The company began operations in 2013. Income less dividendssince inception of the company totals $52,000.
67,000 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 aminus sign.)
