E 3-7 Balance sheet preparation; errors LO3-2, LO3-3 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 2017. 2. The cost of the machinery is $190,000. 3. Accounts receivable includes a $20,000 note receivable from a customer due in 2016 . 4. The note payable includes accrued interest of $5,000. Principal and interest are both due on February 1, 2014. 5. The company began operations in 2008 . Income less dividends since inception of the company totals $35,000. 6. 50,000 shares of no par common stock were issued in 2008.100,000 shares are authorized. Required: Prepare a corrected, classified balance sheet