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LOS GATOS CORPORATION Balance Sheet At December 31, 2018 Assets Cash Accounts receivable Inventories Machinery (net) Franchise (net) Total assets Liabilities and Shareholders' Equity Accounts payable Allowance for uncollectible accounts Note payable Bonds payable $ 64,000 116,000 67,000 132,000 42,000 $421,000 $ 74,000 17,000 79,000 122.000

LOS GATOS CORPORATION Balance Sheet At December 31, 2018 Assets Cash Accounts receivable Inventories Machinery (net) Franchise (net) Total assets Liabilities and Shareholders' Equity Accounts payable Allowance for uncollectible accounts Note payable Bonds payable $ 64,000 116,000 67,000 132,000 42,000 $421,000 $ 74,000 17,000 79,000 122.000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Cash Accounts receivable Inventories Machinery (net) Franchise (net) Total assets LOS GATOS CORPORATION Balance Sheet At December 31, 2018 Assets Liabilities and Shareholders' Equity Accounts payable Allowance for uncollectible accounts $ 64,000 116,000 67,000 132,000 42,000 $421,000 $ 74,000 17,000 Note payable 79,000 Bonds payable 122,000 Shareholders' equity 129,000 Total liabilities and shareholders' equity $421,000 Additional information: 1. Cash includes a $32,000 restricted amount to be used for repayment of the bonds payable in 2022. 2. The cost of the machinery is $214,000. 3. Accounts receivable includes a $32,000 note receivable from a customer due in 2021. 4. The note payable includes accrued interest of $17,000. Principal and interest are both due on February 1, 2019. 5. The company began operations in 2013. Income less dividends since inception of the company totals $47,000. 6. 62,000 shares of no par common stock were issued in 2013. 200,000 shares are authorized. Required: Prepare a corrected, classified balance sheet. Enter amounts in order of liquidity. (Amounts to be deducted should be indicated by a minus sign.) LOS GATOS CORPORATION
Transcribed Image Text:Cash Accounts receivable Inventories Machinery (net) Franchise (net) Total assets LOS GATOS CORPORATION Balance Sheet At December 31, 2018 Assets Liabilities and Shareholders' Equity Accounts payable Allowance for uncollectible accounts $ 64,000 116,000 67,000 132,000 42,000 $421,000 $ 74,000 17,000 Note payable 79,000 Bonds payable 122,000 Shareholders' equity 129,000 Total liabilities and shareholders' equity $421,000 Additional information: 1. Cash includes a $32,000 restricted amount to be used for repayment of the bonds payable in 2022. 2. The cost of the machinery is $214,000. 3. Accounts receivable includes a $32,000 note receivable from a customer due in 2021. 4. The note payable includes accrued interest of $17,000. Principal and interest are both due on February 1, 2019. 5. The company began operations in 2013. Income less dividends since inception of the company totals $47,000. 6. 62,000 shares of no par common stock were issued in 2013. 200,000 shares are authorized. Required: Prepare a corrected, classified balance sheet. Enter amounts in order of liquidity. (Amounts to be deducted should be indicated by a minus sign.) LOS GATOS CORPORATION
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