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
Assets
Cash	$ 62,000
Accounts receivable	113,000
Inventory	66,000
Machinery (net)	131,000
Franchise (net)	41,000
Total assets	$ 413,000
Liabilities and Shareholders Equity
Accounts payable	$ 72,000
Allowance for uncollectible accounts	16,000
Notes payable	77,000
Bonds payable	121,000
Shareholders equity	127,000
Total liabilities and shareholders equity	$ 413,000

Additional Information:

1. Cash includes a $31,000 restricted amount to be used for repayment of the bonds payable in 2028.
2. The cost of the machinery is $212,000.
3. Accounts receivable includes a $31,000 notes receivable from a customer due in 2027.
4. The notes payable balance includes accrued interest of $16,000. 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 $46,000.
6. 61,000 shares of no par common stock were issued in 2019. 100,000 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|} \hline \multicolumn{2}{|c|}{ LOS GATOS CORPORATION } \\ \hline \multicolumn{2}{|c|}{ Balance Sheet } \\ \hline \multicolumn{2}{|c|}{ At December 31, 2024} \\ \hline \multicolumn{2}{|c|}{ Assets } \\ \hline \multicolumn{2}{|l|}{ Current assets: } \\ \hline \multicolumn{2}{|l|}{ Cash } \\ \hline \multicolumn{2}{|l|}{ Accounts receivable } \\ \hline \multicolumn{2}{|l|}{ Allowance for uncollectible accounts } \\ \hline Net accounts receivable & 0 \\ \hline \multicolumn{2}{|l|}{ Inventory } \\ \hline Total current assets & 0 \\ \hline \multicolumn{2}{|l|}{ Investments: } \\ \hline \multicolumn{2}{|l|}{ Notes receivable } \\ \hline & \\ \hline \multicolumn{2}{|l|}{ Property, plant, and equipment: } \\ \hline \multicolumn{2}{|l|}{ Machinery } \\ \hline \multicolumn{2}{|l|}{ Accumulated depreciation } \\ \hline Net property, plant, and equipment & 0 \\ \hline \multicolumn{2}{|l|}{ Intangible assets: } \\ \hline \multicolumn{2}{|l|}{ Franchise (net) } \\ \hline & \\ \hline \multicolumn{2}{|l|}{ Other assets: } \\ \hline & \\ \hline & \\ \hline Total assets & $ \\ \hline \end{tabular} \begin{tabular}{|l|l|l|} \hline \multicolumn{2}{|c|}{ Liabilities and Shareholders' Equity } & \\ \hline Current liabilities: & & \\ \hline Notes payable & & \\ \hline Interest payable & & \\ \hline Accounts payable & & \\ \hline Total current liabilities & & \\ \hline Long-term liabilities: & & \\ \hline Bonds payable & & \\ \hline & & \\ \hline Total liabilities & & \\ \hline Shareholders' equity: & & \\ \hline Common stock & & \\ \hline Retained earnings & & \\ \hline & & \\ \hline Total shareholders' equity & & \\ \hline Total liabilities and shareholders' equity & & \\ \hline \hline \end{tabular}