Required: Prepare a corrected, classified balance sheet. (Amounts to be deducted should be indicated by a minus sign.) LOS GATOS CORPORATION Balance Sheet At December 31, 2018
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 $ 66,000
Accounts receivable 119,000
Inventories 68,000
Machinery (net) 133,000
Franchise (net) 43,000
Total assets $ 429,000
Liabilities and Shareholders’ Equity
Accounts payable $ 76,000
Allowance for uncollectible accounts 18,000
Note payable 81,000
Bonds payable 123,000
Shareholders’ equity 131,000
Total liabilities and shareholders’ equity $ 429,000
Additional information:
Cash includes a $33,000 restricted amount to be used for repayment of the bonds payable in 2022.
The cost of the machinery is $216,000.
Accounts receivable includes a $33,000 note receivable from a customer due in 2021.
The note payable includes accrued interest of $18,000. Principal and interest are both due on February 1, 2019.
The company began operations in 2013. Income less dividends since inception of the company totals $48,000.
63,000 shares of no par common stock were issued in 2013. 100,000 shares are authorized.
Required:
Prepare a corrected, classified balance sheet. (Amounts to be deducted should be indicated by a minus sign.)
Required: Prepare a corrected, classified balance sheet. (Amounts to be deducted should be indicated by a minus sign.) LOS GATOS CORPORATION Balance Sheet At December 31, 2018
Expert Answer
Want to see the step-by-step answer?
Related Accounting Q&A
Q: Hills Company’s June 30 bank statement and the June ledger account for cash are summarized here: ...
A: Calculate the cash balance (after reconciliation) of Hills Company at the end of the June 30.
Q: O 3Depreciation calculation methods Millco, Inc., acquired a machine that cost $1,200,000 early in 2...
A: a.Calculate depreciation expense:Annual Depreciation = (Cost - Salvage Value) / Expected useful life...
Q: Under what situation will return on equity be higher than return on investment? a. When assets excee...
A: (a) When assets exceed liabilities:Suppose assets is $ 70,000 and liabilities is $ 50,000 and net in...
Q: Sandhill Co. sold $5,325,000, 9%, 15-year bonds on January 1, 2017. The bonds were dated January 1, ...
A: Bonds are generally long-term debt. The company issue bonds for investment purpose and paid interest...
Q: Problem 25-3A Computation of cash flows and net present values with alternative depreciation methods...
A: Compute the net income after tax:
Q: The company received a bill for December’s utilities on January 5. The bill was for $235. So at 12...
A: Adjusting entries:Adjusting entries are made at the end of each accounting period, to record the rev...
Q: There can be three subgroups within the long-term capital gain or loss group – 0%/15%/20%, 25%, and ...
A: Generally, capital gains are taxed at a rate of 15%. However a 0 % rate can also be applied when th...
Q: GIFFCO contracted with the investment bank X.M. Retzoff to issue 25 million of short-term paper. The...
A: When debt securities are issued at commission, the fees and commission are deducted from the net pro...
Q: The following information was drawn from the Year 1 accounting records of Ozark Merchandisers: Inve...
A: a. Compute the amount of net sales:
Q: Global Marine obtained a charter from the state in January that authorized 1,000,000 shares of commo...
A: 1. The stock has been issued at $60. Given par value is $5. SO, excess paid in capital =$60-$5= $552...
Q: HH purchased new shelving for its store on April 1, 2018. The shelving is expected to have a 20-year...
A: If the management wants to report highest possible earnings in its financial statement, it can be do...
Q: Ruiz Co. provides the following sales forecast for the next four months: April May June ...
A: The direct material budget can be calculated as follows :
Q: In two or three paragraphs explain the purpose of variance analysis and its benefits and drawbacks.
A: Standard costs form a significant part of managerial accounting. They are usually associated with di...
Q: I'm having trouble finding the missing values for the on company and off company sections, letters a...
A: Click to see the answer
Q: (Prepared from a situation suggested by Professor John W. Hardy.) Lone Star Meat Packers is a major ...
A: 1 pound=16 ounces.One pounce T-Bone steak will give 6 ounce filet mignon & 8 ounce New York cutT...
Q: Activity Levels and Cost Drivers Shroeder Machine Shop has the following activities: Machine oper...
A: Unit level activities means the activities required to be performed each time the product is manufac...
Q: Regarding taxpayers having a tough time of volume of tax regulations. What does the concept "substan...
A: Substance over form: It is an accounting concept, which means that the business must record those tr...
Q: What prevents you from deleting the record of the vendor list? This from quitbooks.
A: Quick books has system of accounting control where in all users do not have access to updating mas...
Q: With the following questions, why is 'n' value backwards? #1: Wiseman Video plans to make four annua...
A: Annual Deposit: Annual deposit refers to the amount deposited annually in a fund or for a specific p...
Q: Pearson Architectural Design uses a job-order costing system and applies studio overhead to jobs on ...
A: 1. Compute the predetermined overhead rate.
Q: Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For it...
A: Activity-based costing (ABC): The costing method which allocates overheads to the products based on ...
Q: I could use some help with this question: Egyptian Enterprises has both common and preferred stock. ...
A: Determine the dividends to be paid in 2018:
Q: FB Manufacturing Company is a partnership among Yolando Gonzalez, Willies Todd, and Linda Walkers. T...
A: Partnership: A partnership is that type of business in which two or more person share loss and profi...
Q: Gelb Company currently manufactures 40,000 units per year of a key component for its manufacturing p...
A: The decision to manufacture or buy needs to be taken on the basis of impact of cost changes arising ...
Q: The pretax financial income (or loss) figures for Martinez Company are as follows. 2012 $148,00...
A: Income tax expense: Income tax expense is an expense for the company which is equal to a certain pe...
Q: Golden Manufacturing Company started operations by acquiring $150,000 cash from the issue of common ...
A: a. Record the purchase in a horizontal statements model.
Q: MARKETING: Kroger, the country's leading grocery-only chain, added a line of private label organi...
A: The provided information has been summarised as below
Q: How Goodwill is accounted for on financial statement. What is inter-company long-term construction c...
A: Goodwill is an intangible asset reported under the non-current assets in the Balance sheet. Only pur...
Q: Mario's Fencing has the following balance sheet: Assets Cash: $100,000 Accounts Receivable: $300,0...
A: In the share split, the number of existing shares are split into two shares for each share. So, the ...
Q: Suppose your company sells services of $260 in exchange for $175 cash and $85 on account. Depreciati...
A: Journal entry: The record of business transactions in a chronological order in the journal using deb...
Q: [The following information applies to the questions displayed below.] The Shirt Shop had the follo...
A: Under FIFO cost flow assumption, the inventory received first is charged to Cost of Goods sold and t...
Q: I'm not understanding how to solve this problem. Please help, thanks!
A: Process firms accumulate production costs by process or department for a given eriod of time. Proces...
Q: Which of the following statements is correct? When depreciable property is gifted to another indivi...
A: Depreciation recapture: Depreciation recapture is a method used by ISR (Internal Revenue Service) th...
Q: Confronting Corruption & Resource Guide to FCPA Answer these questions: 1. Who are covered by th...
A: As you have posted 3 different questions, we are answering the first question.In case you require th...
Q: Affordable Lawn Care, Inc., provides lawn mowing services to both commercial and residential custome...
A: Prepare an income statement, statement of retained earnings and balance sheet of Incorporation A for...
Q: I am resubmitting this question as I am getting flagged that there is information missing. Losses...
A: Contribution format segmented income statement shows the difference between the fixed costs as trace...
Q: What is the difference between the accounting for a small stock dividend and the accounting for a la...
A: Stock Dividends:Stock dividend represents the declaration and distribution of dividend to its shareh...
Q: On January 1, 2019, Roosevelt Company purchased 12% bonds having a maturityvalue of $500,000 for $53...
A: Prepare amortization schedule.
Q: Zenon Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day...
A: Flexible Budget: The flexible budget is a budget which modifies itself as per the variations in the ...
Q: Concord Company produces Optimist sailboats. The costs of producing 107000 tiller extensions for use...
A: Compute the increase or decrease in the net income:
Q: Problem 25-2A Analysis and computation of payback period, accounting rate of return, and net present...
A: 1. Compute the payback period:
Q: On January 1, 2019, Shenzhen ltd. Issued a 10% convertible bond at par, with a face value $100,000 m...
A: A convertible bond represents a bond that can be converted into certain number of shares by its hold...
Q: The following information is available for Sandhill Co. for three recent fiscal years. 2017 ...
A: Inventory turnover: This is the ratio which analyzes the number of times inventory is sold during th...
Q: Purchase of investments $ 170 Dividends paid 1,120 Interest paid 320 Additional borrowing ...
A: Cash flow from financing activities: This section of cash flows statement provides information abou...
Q: How to determine cash portion of retained earnings
A: Retained earnings are that part of profit which is reinvested in the business. It is the amount left...
Q: On January 1, 2018, the Mason Manufacturing Company began construction of a building to be used as i...
A: First of all we will start by calculating the rate or capitalization.For specific borrowings we will...
Q: Nova Company’s total overhead cost at various levels of activity are presented below: Month Mac...
A: Click to see the answer
Q: Walt Bach Company has accumulated the following budget data for the year 2019. Sales: 40000 units, ...
A: Cost of goods sold alludes to the immediate costs inferable from the generation of the goods sold in...
Q: The materials handling charge for ABC Corp. is $0.50 per pound of finished product. What is the mate...
A: Material handling charges: Material handling charges is the cost incurred in the storage, movement, ...
Q: Goshford Company produces a single product and has capacity to produce 100,000 units per month. Cost...
A: Net income: Net income is the residual amount left after deducting all the expenses incurred by the ...