Exercise 3-7 (Static) Balance sheet preparation; errors [LO3-2, 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, 2021 | |||
Assets | |||
Cash | $ | 40,000 | |
Accounts receivable | 80,000 | ||
Inventory | 55,000 | ||
Machinery (net) | 120,000 | ||
Franchise (net) | 30,000 | ||
Total assets | $ | 325,000 | |
Liabilities and Shareholders’ Equity | |||
Accounts payable | $ | 50,000 | |
Allowance for uncollectible accounts | 5,000 | ||
Notes payable | 55,000 | ||
Bonds payable | 110,000 | ||
Shareholders’ equity | 105,000 | ||
Total liabilities and shareholders’ equity | $ | 325,000 | |
Additional Information:
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.)
Exercise 3-7 (Static) Balance sheet preparation; errors [LO3-2, 3-3] The following balance sheet for the Los...
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 $ 40,000 Accounts receivable 80,000 Inventory 55,000 Machinery (net) 120,000 Franchise (net) 30,000 Total assets $ 325,000 Liabilities and Shareholders’ Equity Accounts payable $ 50,000 Allowance for uncollectible accounts 5,000 Notes payable 55,000 Bonds payable 110,000 Shareholders’ equity 105,000 Total liabilities and shareholders’ equity $...
Exercise 3-7 Balance sheet preparation; errors [LO3-2, 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, 2018 AssetS Cash Accounts receivable Inventories Machinery (net) Franchise (net) $ 70,000 125,000 70,000 135,000 45, 000 $445,000 Total assets Liabilities and Shareholders' Equity Accounts payable $ 80,000 Allowance for uncollectible accounts 20,000 85,000 125,000 135,000 $445,000 Note payable Bonds...
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 70,000 125,000 70,000 135,000 45,000 445,000 $ $ 80,000 20,000 85,000 125,000 135,000 445,000...
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 $ 64,000 116,000 67,000 132,000 42,000 $ 421,000 74,000 17,000 79,000 122,000 129,000 $ 421,000...
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 $ 68,000 122,000 69,000 134,000 44,000 $ 437,000 $ 78,000 19,000 83,000 124,000 133,000 $...
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 $ 78,000 137,000 74,000 139,000 49,000 $ 477,000 $ 88,000 24,000 93,000 129,000 143,000 $...
The following balance sheet for the Los Gatos Corporation was prepared by a recently hired accountant. In reviewing the statement you notice several errors. $ 5.25 Joints 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 74,000 131,000 72,089 137,000 47,809 461,000 8 02:40:32 $ $ 84,000 22,000...
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 56,000 104,000 63,000 128,000 38.000 $ 389,000 $ 66,000 13,000 71,000 118,000 121.000 $ 389,000...
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 48,000 92,000 59,000 124,000 34,000 357,000 $ $ 58,000 9,000 63,000 114,000 113,000 357,000...
how much would common stock be?
LOS GATOS CORPORATION Balance Sheet At December 31, 2021 Assets 50, 000 95,000 60,000 125,000 35,000 $ 365,000 Cash Accounts receivable Inventory Machinery (net) Franchise (net) Total assets Liabilities and Shareholders' Equity 60,000 10,000 65,000 115,000 115,000 $ 365,000 Accounts payable Allowance for uncollectible accounts Notes payable Bonds payable Shareholders' equity Total liabilities and shareholders' equity ces Additional Information: 1. Cash includes a $25,000 restricted amount to be used for repayment of the bonds...