- To Do As apter 03 Pre-Built Problems Help Save&Exit; Submit Check my work The
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- To Do As apter 03 Pre-Built Problems Help Save&Exit; Submit Check my work The following balance sheet for the Los Gatos Corporation was prepared by a recently hired accountant.In reviewing the statement you notice several erors. Decenber 31, 2018 ints Cash Accounts receivable Inventories $ 42,000 83,000 56,000 121,000 31,000 $333,000 Machinery (net) Total assets Liabilities and Shareholders Equit Allowance for uncollectible accounts Note payable Bonds payable s 52,000 6,000 57,000 111,000 107,000 $333,000 equity Total liabilities and shareholders equity Additional information: 1. Cash includes a $21,000 restricted amount to be used for repayment of the bonds payable in 2022. 2. The cost of the machinery is $192,000. 3. Accounts receivable includes a $21,000 note receivable from a customer due in 2021. 4. The note payable includes 5. The company began operations in 2013. Income less dividends since inception of the company totals $36,000. 6. 51,000 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 a minus sign.) K Prev 6 of 1 Next>Explanation / Answer
LOS GATOS CORPORATION
Balance Sheet
At December 31, 2013
ASSETS;
Current Assets;
Cash
$21000
Accounts Receivable, net of allowance for uncollectible $6000
$56000
Inventories
$56000
Total current assets
$133000
Investments;
Bond shinking fund
$21000
Notes receivable
$21000
Total investments
$42000
Property, Plant and Equipment;
Machinery
$192000
Less: Accumulated depreciation
($71000)
Net property, plant and equipment
$121000
Intangible assets;
Franchise, net
$31000
Total assets
$327000
Liabilities and Shareholders’ equity;
Current liabilities;
Accounts payable
$52000
Interest payable
$6000
Notes payable
$51000
Total current liabilities
$109000
Long-term liabilities;
Bonds payable
$111000
Shareholders’ equity;
Common stock, no par value:
100000 shares authorised;
50000 shares issued ($107000 - $36000)
$71000
Retained earnings
$36000
Total shareholders’ equity
$107000
Total liabilities and shareholders’ equity
$327000
LOS GATOS CORPORATION
Balance Sheet
At December 31, 2013
ASSETS;
Current Assets;
Cash
$21000
Accounts Receivable, net of allowance for uncollectible $6000
$56000
Inventories
$56000
Total current assets
$133000
Investments;
Bond shinking fund
$21000
Notes receivable
$21000
Total investments
$42000
Property, Plant and Equipment;
Machinery
$192000
Less: Accumulated depreciation
($71000)
Net property, plant and equipment
$121000
Intangible assets;
Franchise, net
$31000
Total assets
$327000
Liabilities and Shareholders’ equity;
Current liabilities;
Accounts payable
$52000
Interest payable
$6000
Notes payable
$51000
Total current liabilities
$109000
Long-term liabilities;
Bonds payable
$111000
Shareholders’ equity;
Common stock, no par value:
100000 shares authorised;
50000 shares issued ($107000 - $36000)
$71000
Retained earnings
$36000
Total shareholders’ equity
$107000
Total liabilities and shareholders’ equity
$327000
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