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.

1. Received $42,000 cash from the investors who organized Down, Incorporated
2. Borrowed $15,000 cash and signed a note due in two years.
3. Ordered equipment costing $24,000.
4. Purchased $6,000 in equipment, paying $3,000 in cash and signing a six-month note for the balance.
5. Received the equipment ordered in (c), paid for half of it, and put the rest on account.

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 demotivational posters and office products. Down, Incorporated, encountered the following events during its first month of operations. a. Received $42,000 cash from the investors who organized Down, Incorporated b. Borrowed $15,000 cash and signed a note due in two years. c. Ordered equipment costing $24,000. d. Purchased $6,000 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. 3. Prepare a classified balence sheet at May 31. Include Retained Earnings with a balance of zero