Question

Part 1 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. Boints 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 Required: 1. Summarize the financial effects of items (a)-(e) in a table. (Enter any decreases to account balances with a minus sign.) Assets Stockholders' Equity Common Stock References Cash Equipment Liabilities ST Notes Payable 0 Accounts Payable LT Notes Payable Beg . End

Answer 1

	Assets		Liabilities			Stockholders' Equity
	Cash	Equipment	Accounts Payable	ST Notes Payable	LT Notes Payable	Common Stock
Beg.	0	0	0	0	0	0
a	48000					48000
b	15000				15000
c
d	-4000	6000		2000
e	-8000	16000	8000
End.	51000	22000	8000	2000	15000	48000
Note: The blank fields can alternatively be written with 0