Exercise 3-7 (Algo) Balance sheet preparation; errors [LO3-2, 3-3] The following balance sheet for the Los Gatos Corporation was prepared by a recently hired accountant. In reviewing the state you notice several errors. Cash Accounts receivable Inventory Machinery (net) Franchise (net) Total assets LOS GATOS CORPORATION Balance Sheet At December 31, 2021 Assets Notes payable Bonds payable Liabilities and Shareholders' Equity Accounts payable Allowance for uncollectible accounts Shareholders' equity Total liabilities and shareholders' equity 72,000 128,000 71,000 136,000 46,000 $ 453,000 $ $ 82,000 21,000 87,000 126,000 137,000 $ 453,000 Additional Information: 1. Cash includes a $36,000 restricted amount to be used for repayment of the bonds payable in 2025. 2. The cost of the machinery is $222,000. Answer the work you have c 3. Accounts receivable includes a $36,000 notes receivable from a customer due in 2024. 4. The notes payable balance includes accrued interest of $21,000. Principal and interest are both due on February 1, 2022. 5. The company began operations in 2016. Net income less dividends since inception of the company totals $51,000. 6. 66,000 shares of no par common stock were issued in 2016. 200,000 shares are authorized. Required: Prepare a corrected, classified balance sheet. Use the additional information to help determine appropriate classifications and acc palances. The cost of machinery and its accumulated depreciation are shown separately. (Amounts to be deducted should be ndicated by a minus sign.)
Exercise 3-7 (Algo) Balance sheet preparation; errors [LO3-2, 3-3] The following balance sheet for the Los Gatos Corporation was prepared by a recently hired accountant. In reviewing the state you notice several errors. Cash Accounts receivable Inventory Machinery (net) Franchise (net) Total assets LOS GATOS CORPORATION Balance Sheet At December 31, 2021 Assets Notes payable Bonds payable Liabilities and Shareholders' Equity Accounts payable Allowance for uncollectible accounts Shareholders' equity Total liabilities and shareholders' equity 72,000 128,000 71,000 136,000 46,000 $ 453,000 $ $ 82,000 21,000 87,000 126,000 137,000 $ 453,000 Additional Information: 1. Cash includes a $36,000 restricted amount to be used for repayment of the bonds payable in 2025. 2. The cost of the machinery is $222,000. Answer the work you have c 3. Accounts receivable includes a $36,000 notes receivable from a customer due in 2024. 4. The notes payable balance includes accrued interest of $21,000. Principal and interest are both due on February 1, 2022. 5. The company began operations in 2016. Net income less dividends since inception of the company totals $51,000. 6. 66,000 shares of no par common stock were issued in 2016. 200,000 shares are authorized. Required: Prepare a corrected, classified balance sheet. Use the additional information to help determine appropriate classifications and acc palances. The cost of machinery and its accumulated depreciation are shown separately. (Amounts to be deducted should be ndicated by a minus sign.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Flms.mheducation.com%252Fmghmiddleware %252Fmhepre
xercises
Cash
Accounts receivable.
Inventory
Machinery (net)
Franchise (net)
Total assets
Exercise 3-7 (Algo) Balance sheet preparation; errors [LO3-2, 3-3]
The following balance sheet for the Los Gatos Corporation was prepared by a recently hired accountant. In reviewing the stateme
you notice several errors.
Notes payable
Bonds payable
Check my work mode: This shows what is correct or incorrect for the work you have comp
LOS GATOS CORPORATION
Balance Sheet
At December 31, 2021
Assets
Liabilities and Shareholders' Equity
Accounts payable
Allowance for uncollectible accounts
Shareholders' equity
Total liabilities and shareholders' equity
72,000
128,000
71,000
136,000
46,000
$ 453,000
LOS GATOS CORPORATION
$
Additional Information:
1. Cash includes a $36,000 restricted amount to be used for repayment of the bonds payable in 2025.
2. The cost of the machinery is $222,000.
3. Accounts receivable includes a $36,000 notes receivable from a customer due in 2024.
x Answer is not complete.
LOS GATOS CORPORATION
Balance Sheet
82,000
21,000
87,000
126,000
137,000
$ 453,000
$
4. The notes payable balance includes accrued interest of $21,000. Principal and interest are both due on February 1, 2022.
5. The company began operations in 2016. Net income less dividends since inception of the company totals $51,000.
6. 66,000 shares of no par common stock were issued in 2016. 200,000 shares are authorized.
Required:
Prepare a corrected, classified balance sheet. Use the additional information to help determine appropriate classifications and acc
balances. The cost of machinery and its accumulated depreciation are shown separately. (Amounts to be deducted should be
indicated by a minus sign.)
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Transcribed Image Text:index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Flms.mheducation.com%252Fmghmiddleware %252Fmhepre
xercises
Cash
Accounts receivable.
Inventory
Machinery (net)
Franchise (net)
Total assets
Exercise 3-7 (Algo) Balance sheet preparation; errors [LO3-2, 3-3]
The following balance sheet for the Los Gatos Corporation was prepared by a recently hired accountant. In reviewing the stateme
you notice several errors.
Notes payable
Bonds payable
Check my work mode: This shows what is correct or incorrect for the work you have comp
LOS GATOS CORPORATION
Balance Sheet
At December 31, 2021
Assets
Liabilities and Shareholders' Equity
Accounts payable
Allowance for uncollectible accounts
Shareholders' equity
Total liabilities and shareholders' equity
72,000
128,000
71,000
136,000
46,000
$ 453,000
LOS GATOS CORPORATION
$
Additional Information:
1. Cash includes a $36,000 restricted amount to be used for repayment of the bonds payable in 2025.
2. The cost of the machinery is $222,000.
3. Accounts receivable includes a $36,000 notes receivable from a customer due in 2024.
x Answer is not complete.
LOS GATOS CORPORATION
Balance Sheet
82,000
21,000
87,000
126,000
137,000
$ 453,000
$
4. The notes payable balance includes accrued interest of $21,000. Principal and interest are both due on February 1, 2022.
5. The company began operations in 2016. Net income less dividends since inception of the company totals $51,000.
6. 66,000 shares of no par common stock were issued in 2016. 200,000 shares are authorized.
Required:
Prepare a corrected, classified balance sheet. Use the additional information to help determine appropriate classifications and acc
balances. The cost of machinery and its accumulated depreciation are shown separately. (Amounts to be deducted should be
indicated by a minus sign.)
▬▬
Javeu
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Q Search
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