Assume Down, Incorporated, was organized on May 1 to compete with Despair, Incorporateda company that sells de-motivational posters and office products. Down, Incorporated, encountered the following events during its first month of operations.
Received $41,000 cash from the investors who organized Down, Incorporated
Borrowed $20,000 cash and signed a note due in two years.
Ordered equipment costing $23,000.
Purchased $11,000 in equipment, paying $3,000 in cash and signing a six-month note for the balance.
Received the equipment ordered in (c), paid for half of it, and put the rest on account. Prepare a classified balance sheet at May 31. Include Retained Earnings with a balance of zero.
O Required information The following information applies to the questions displayed below.) Assume Down, Incorporated, was organized on May 1 to compete with Despair, Incorporated-a company that sells de motivational posters and office products. Down, Incorporated, encountered the following events during its first month of operations a. Received $41,000 cash from the investors who organized Down, Incorporated b. Borrowed $20,000 cash and signed a note due in two years. c. Ordered equipment costing $23,000. d. Purchased $11,000 in equipment paying $3,000 in cash and signing a six-month note for the balance e. Received the equipment ordered in a paid for half of it, and put the rest on account. 3. Prepare a classified balance sheet at May 31. Include Retained Earnings with a balance of zero. DOWN.INCORPORATED Balance Sheet DOWN.INCORPORATED Balance Sheet 0 0 0 0 $ 0
