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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 journal entries for each transaction.

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. 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 (.paid for half of it, and put the rest on account Required information No Transaction Debit Credit General Journal No Joumal Entry Required 1 a 2 b Notes Payable (long-term) 20,000 3 Equipment 23,000 4 d Equipment Cash Notes Receivable (short-term) 11,000 3,000 8,000 5 11,500 Accounts Payable Accounts Receivable 11,500 5

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