Answer:
Los Gatos Corporation
Corrected, Classified Balance Sheet
LOS GATOS CORPORATION
Balance Sheet
At December 31, 2018
Assets
Current Assets:
Cash $ 37,000
Restricted Cash 37,000
Accounts receivable 94,000
Allowance for
uncollectibles 22,000 72,000
Inventories 72,000
Total current assets $218,000
Long-term Assets:
Note receivable 37,000
Machinery 224,000
Acc. Depreciation 87,000 137,000
Franchise (net) 47,000
Total long-term assets $221,000
Total assets $ 439,000
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable $ 84,000
Accrued interest 22,000
Note payable 67,000
Total current liabilities $173,000
Long-term liabilities
Bonds payable 127,000
Shareholders’ equity
Common Stock, 100,000 authorized
67,000 shares of no par issued 87,000
Retained earnings 52,000 139,000
Total liabilities and shareholders’ equity $ 439,000
Step-by-step explanation:
a) Data and Calculations:
LOS GATOS CORPORATION
Balance Sheet
At December 31, 2018
Assets
Cash $ 74,000
Accounts receivable 131,000
Inventories 72,000
Machinery (net) 137,000
Franchise (net) 47,000
Total assets $ 461,000
Liabilities and Shareholders’ Equity
Accounts payable $ 84,000
Allowance for
uncollectibles 22,000
Note payable 89,000
Bonds payable 127,000
Shareholders’ equity 139,000
Total liabilities and shareholders’ equity $ 461,000
Adjustment based on additional information:
Cash $ 74,000
Bonds Payable restricted 37,000
Cash balance $37,000
Machinery (net) 137,000
Cost of machinery 224,000
Acc. Depreciation 87,000
Accounts receivable 131,000
Long-term Note receivable 37,000
Balance 94,000
Short-term liabilities:
Note payable 89,000
Accrued interest 22,000
Note payable 67,000
Retained earnings = $52,000
Shareholders’ equity 139,000
Retained earnings 52,000
Balance in equity 87,000