60.1K

Verified Solution

Link Copied!

O Required information E2-11 (Algo) Recording Journal Entries and Preparing a Classified Balance Sheet (LO 2-1, LO 2-2, LO 2-4, LO 2-5) [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 $37,000 cash from the Investors who organized Down, Incorporated b. Borrowed $16,000 cash and signed a note due in two years. c. Ordered equipment costing $19,000. d. Purchased $7,000 in equipment, paying $2,000 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. E2-11 (Algo) Part 1 Required: 1. Summarize the financial effects of items (a)-le) in a table (Enter any decreases to account balances with a minus sign.) Assets Stockholders Equity Common Stock Cash Equipment Liabilities Short-term Notes Payable 0 Accounts Payable Beginning Long-term Notes Payable 0 + + 0 0 0 0 a b. d. . 0. Ending 0 0 0 2. Prepare journal entries for each transaction. (If no entry is required for a transaction/event, select "No Journal Entry Required" In the first account field.) View transaction list Journal entry worksheet

Answer & Explanation Solved by verified expert

See Answer