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Assume Downer.com was organized on May 1, to compete with Despair, Inc.-a company that sells demotivational posters and office products. The following events occurred during
Assume Downer.com was organized on May 1, to compete with Despair, Inc.-a company that sells demotivational 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: 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.) Assets Liabilities Shareholders Equity Contributed Capital Cash Equipment Accounts Payable ST Notes Payable LT Notes Payable Bog. End
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