Question

The following balance sheet for the Los Gatos Corporation was prepared by a recently hired accountant. In reviewing the statement you notice several errors.

Additional information:
1. Cash includes a $20,000 bond sinking fund to be used for repayment of the bonds payable in 2015.
2. The cost of the machinery is $190,000.
3. Accounts receivable includes a $20,000 note receivable from a customer due in 2014.
4. The note payable includes accrued interest of $5,000. Principal and interest are both due on February 1, 2012.
5. The company began operations in 2006. Income less dividends since inception of the company totals $35,000.
6. 50,000 shares of no par common stock were issued in 2006. 100,000 shares are authorized.

Required:
Prepare a corrected, classified balance sheet.



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  • CreatedJune 24, 2013
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