Required information Assume Down, Inc., was organized on May 1 to compete with D

Question

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 a. Received $31,000 cash from the investors who organized Down, Inc. b. Borrowed $16,000 cash and signed a note due in two years c. Ordered equipment costing $13,000 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 (c), 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.INC Balance Sheet For the Month Ended May 31 Assets urrent Assets

Explanation / Answer

Answer 3. DOWN INC. Balance Sheet For the Month Ended May 31 Assets Liabilities & Stockholders' Equity Current Assets Liabilities Cash    42,000.00 Current Libilities Accounts Payable      3,000.00 Property Plant & Equipment Notes Payable      5,000.00      8,000.00 Equipment    13,000.00 Long Term Liabilities Notes Payable    16,000.00 Total Liabilities    24,000.00 Stockholders' Equity Common Stock    31,000.00 Retained Earnings                   -   Total Stockholders' Equity    31,000.00 Total Assets    55,000.00 Total Liabilities & Stockholders' Equity    55,000.00

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.