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.coms operations.

a. Received $70,000 cash from the investors who organized Downer.com Corporation.

b. Borrowed $25,000 cash and signed a note due in two years.

c. Ordered computer equipment costing $18,500.

d. Purchased $11,500 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.

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

DOWNER.COM
Balance Sheet
At May 31
Assets		Liabilities
Current assets		Current liabilities
Total current assets	0	Total current liabilities	0
Noncurrent assets
		Total Liabilities	0
		Shareholders equity
		Total shareholders equity	0
Total assets	$0	Total liabilities & shareholders equity	$0