Exercise 3-7 (Algo) Balance sheet preparation; errors [LO3-2, 3-3] The foliowing 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 $22,000 restricted amount to be used for repayment of the bonds payable in 2028 2. The cost of the machinery is $194.000 3. Accounts receivable includes a $22,000 notes receivable from a customer due in 2027 4. The notes payable balance includes accrued interest of $7,000 Principal and interest are both due on February 1,2025 . 5. The company began operations in 2019 Net income less dividends since inception of the company totals $37.000. 6. 52.000 shares of no par common stock were issued in 2019.200,000 shares are authorized Required: Prepare a corrected, classified balance sheet. Use the additional information to help determine appropriate classifications and account balances. The cost of machinery and its accumulated depreciation are shown separately. Note: Amounts to be deducted should be indicated by a minus sign. \begin{tabular}{|c|c|c|c|} \hline \multicolumn{4}{|c|}{ Assets } \\ \hline Current assets. & & & \\ \hline Cash & & $ & 22,000 \\ \hline Accounts recenvable & 64,000 & & \\ \hline Allowance for uncollectible accounts & 7,000 & & \\ \hline Net accounts receivable & & & 71,000 \\ \hline Inventory & & & 57,000 \\ \hline Total current assets & & & 150,000 \\ \hline \multicolumn{4}{|l|}{ Investments: } \\ \hline Notes receivable & & & 22,000 \\ \hline \multicolumn{4}{|l|}{ Restricted cash } \\ \hline \multicolumn{4}{|l|}{ Propety, plant, and equipment } \\ \hline Machinery & 194,000 & & \\ \hline Accumulated degreciation & (72,000) & & \\ \hline Net property, plant, and equipment & & & 122,000 \\ \hline \multicolumn{4}{|l|}{ Intangble assets } \\ \hline \multicolumn{4}{|l|}{ Franchise (net) } \\ \hline \multicolumn{4}{|l|}{ Other assets } \\ \hline \multicolumn{4}{|l|}{ Restncied cash } \\ \hline Total assets & & s & 294,000 \\ \hline \multicolumn{4}{|c|}{ Liabilities and Shareholders' Equity } \\ \hline \multicolumn{4}{|l|}{ Current liabilites: } \\ \hline \multicolumn{4}{|l|}{ Accounts paryable } \\ \hline Interest payable & & & 7,000 \\ \hline \multicolumn{4}{|l|}{ Notes pasyable } \\ \hline Total current labitaies & & & 7,000 \\ \hline \multicolumn{4}{|l|}{ Long-term liabilites: } \\ \hline Bonds payatie & +2 & & \\ \hline Total liabdities & & & 7,000 \\ \hline \multicolumn{4}{|l|}{ Stareholders equily } \\ \hline \multicolumn{4}{|l|}{ Common slock } \\ \hline Relained earnings & 37,000 & & \\ \hline Total shareholders' equity & & & 37,000 \\ \hline Total liabilies and sharctiolders equity & & 5 & 44.000 \\ \hline \end{tabular}