E2-12 Recording Journal Entries and Preparing a Classified Balance Sheet (LO1, LO3, LOS) 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 $84,000 cash from the investors who organized Downer.com Corporation b. Borrowed $28,000 cash and signed a note due in two years c Ordered computer equipment costing $17,000 d Purchased $11,000 in equipment, paying $3,600 in cash and signing a six-month note for the balance e. Received the equipment ordered in (d. 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.) CE Assets Liabilities Shareholders Equity Cash Equipment Accounts ST Notes LT Notes Contributed Payable Payable Payable Capital Beg. a b. C. d e End. 2. Prepare journal entries for each transaction. Of no entry is required for a transaction/event, select "No Journal Entry Required in the first account field.) View transaction list Journal entry worksheet 1 5 > 2 3 4 Besa842898.rash from the investors who organized Note: Enter debits before credits. Transaction a General Journal Debit Credit Record entry View general journal Clear entry 3. Prepare a classified balance sheet at May 31. Include retained earnings with a balance of zero. DOWNER.COM Balance Sheet At May 31 Liabilities Current liabilities Assets Current assets Total current liabilities Total current assets Noncurrent assets Total Liabilities Shareholders' equity Total shareholders' equity Total liabilities & shareholders' equity Total assets