Exercise $3-7($Algo$)$ Balance sheet preparation; errors $[$LO$3-2,3-3]$

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

LOS GATOS CORPORATION

Balance Sheet

At December $31,2024$

Cash

Assets

Accounts receivable

Inventory

Machinery $($net$)$

Franchise $($net$)$

Total assets

Liabilities and Shareholders' Equity

Accounts payable

Allowance for uncollectible accounts

Notes payable

Bonds payable

Shareholders' equity

Total liabilities and shareholders' equity

$\backslash$table$[[$$$50,000$