PLEASE EXPLAIN STEP BY STEP HOW YOU SOLVED THIS PROBLEM

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, 2021 Assets Cash 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 $ $ 80,000 140,000 75,000 140,000 50,000 $ 485,000 $ 90,000 25,000 95,000 130,000 145,000 $ 485,000 Additional Information: 1. Cash includes a $40,000 restricted amount to be used for repayment of the bonds payable in 2025. 2. The cost of the machinery is $230,000. 3. Accounts receivable includes a $40,000 notes receivable from a customer due in 2024. 4. The notes payable balance includes accrued interest of $25,000. Principal and interest are both due on February 1, 2022. 5. The company began operations in 2016. Net income less dividends since inception of the company totals $55,000. 6.70,000 shares of no par common stock were issued in 2016. 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. (Amounts to be deducted should be indicated by a minus sign.) 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. (Amounts to be deducted should be indicated by a minus sign.) LOS GATOS CORPORATION Balance Sheet At December 31, 2021 Assets Current assets: Cash $ 40,000 Accounts receivable 0 Net accounts receivable Inventory Total current assets Investments: Notes receivable 75,000 115,000 $ 40,000 40,000 80,000 230,000 Total investments Property, plant, and equipment: Machinery Accumulated depreciation Net property, plant, and equipment Intangible assets: Franchise (net) 230,000 50,000 Total assets $ 475,000 IULAI IVOOLTIGI ILD , 230,000 Property, plant, and equipment: Machinery Accumulated depreciation Net property, plant, and equipment Intangible assets: Franchise (net) 230,000 50,000 Total assets $ 475,000 Liabilities and Shareholders' Equity Current liabilities: Total current liabilities 0 Long-term liabilities: Bonds payable 0 Total liabilities Shareholders' equity: Common stock Retained earnings 0 Total shareholders' equity Total liabilities and shareholders' equity $ 0