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 $38,000 cash from the investors who organized Down, Incorporated b. Borrowed $17,000 cash and signed a note due in two years. c. Ordered equipment costing $20,000. d. Purchased $8,000 in equipment, paying $3,000 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. E2-11 (Algo) Part 3 3. Prepare a classified balance sheet at May 31. Include Retained Earnings with a balance of zero. DOWN.INCORPORATED Balance Sheet 0 EA $ 0