Question

art 3 of 3 Required information Assume Down, Inc., was organized on May 1 to compete with Despair, Inc.-a company that sells de-motivational posters and office products. Down, Inc., encountered the following events during its first month of operations. Ints a. Received $48,000 cash from the investors who organized Down, Inc. b. Borrowed $15,000 cash and signed a note due in two years. c. Ordered equipment costing $16,000. d. Purchased $6,000 in equipment, paying $4,000 in cash and signing a six-month note for the balance. e. Received the equipment ordered in (C). paid for half of it, and put the rest on account. eBook Hint 3. Prepare a classified balance sheet at May 31. Include Retained Earnings with a balance of zero. Print DOWN.INC Balance Sheet eferences

Answer 1

BALANCE SHEET
ASSETS	$	LIABILITIES	$
CURRENT ASSETS		CURRENT LIABILITIES
CASH	51000	ACCOUNTS PAYABLE	8000
TOTAL CURRENT ASSETS	51000	ST NOTE PAYABLE	2000
		TOTAL CURRENT LIABILITIES	10000
NON CURRENT ASSETS		LT NOTE PAYABLE	15000
EQUIPMENT	22000	TOTAL LIABILITIES	15000
		STOCKHOLDER EQUITY
		CAPITAL	48000
		RETAINED EARNING	-
		TOTAL STOCKHOLDER EQUITY	48000
TOTAL ASSETS	73000	TOTAL LIABILITIES AND STOCKHOLDER EQUITY	73000