Assume Downer.com was organized on May $1,$ to compete with Despair, Inc.$$a company that sells de$-$motivational posters and office products. The following events occurred during the first month of Downer.com$$s operations.

Received $$74,000$ cash from the investors who organized Downer.com Corporation.

Borrowed $$27,000$ cash and signed a note due in two years.

Ordered computer equipment costing $$19,500.$

Purchased $$12,500$ in equipment, paying $$3,400$ in cash and signing a six$-$month note for the balance.

Received the equipment ordered in $($c$),$ paid for half of it$,$ and put the rest on account.

Required:

$1.$ For each of the events $($a$)$ through $($e$),$ perform transaction analysis and indicate the amount of effect on the accounting equation. $($Enter any decreases to account balances with a minus sign.$)$

$2.$ Prepare journal entries for each transaction. $($If no entry is required for a transaction$/$event$,$ select $"$No Journal Entry Required" in the first account field.$)$

$3.$ Prepare a classified balance sheet at May $31.$ Include retained earnings with a balance of zero.Assume

Downer.com was organized on May $1,$ to compete with Despair, Inc.$-$a company that sells de$-$motivational posters and office

products. The following events occurred during the first month of

Downer.com's operations.

a$.$ Received $$74,000$ cash from the investors who organized

Downer.com Corporation.

b$.$ Borrowed $$27,000$ cash and signed a note due in two years.

c$.$ Ordered computer equipment costing $$19,500.$

d$.$ Purchased $$12,500$ in equipment, paying $$3,400$ 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.

Required:

For each of the events $($a$)$ through $($e$),$ perform transaction analysis and indicate the amount of effect on the accounting equation.

$($Enter any decreases to account balances with a minus sign.$)$

Prepare journal entries for each transaction. $($If no entry is required for a transaction$/$event$,$ select $"$No Journal Entry Required" in

the first account field.$)$

Journal entry worksheet

Received $$74,000$ cash from the investors who organized

Downer.com

Corporation.

Note: Enter debits before credits.

Prepare a classified balance sheet at May $31.$ Include retained earnings with a balance of zero.Total assets