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 $56,000
Accounts receivable 104,000
Inventory 63,000
Machinery (net) 128,000
Franchise (net) 38,000
Total assets $389,000
Liabilities and Shareholders’ Equity
Accounts payable $66,000
Allowance for uncollectible accounts 13,000
Notes payable 71,000
Bonds payable 118,000
Shareholders’ equity 121,000
Total liabilities and shareholders’ equity $389,000

Additional Information:

1. Cash includes a $20,000 restricted amount to be used for repayment of the bonds payable in 2025.
2. The cost of the machinery is $190,000.
3. Accounts receivable includes a $20,000 notes receivable from a customer due in 2024.
4. The notes payable balance includes accrued interest of $5,000. 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 $35,000.
6. 50,000 shares of no par common stock were issued in 2016. 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. (Amounts to be deducted should be indicated by a minus sign.)