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E2-12 Recording Journal Entries and Preparing a Classified Balance Sheet [L01, L03, L05] Assume Downencom was organized on May 1, to compete with Despair, IncPa company that sells demotivatfonal posters and ofce products. The following events occurred during the first month of Downercom's operations. 3. Received $68,000 cash from the investors who organized Downencom Corporation b. Borrowed $24,000 cash and signed a note due in two years c. Ordered computer equipment costing $18,000 of. Purchased $11,000I in equipment, paying $2,800 in cash and signing a six-month note for the balance 9. Received the equipment ordered in (in, paid for half of it, and put the rest on account Required: 1. For each of the events (a) through [9), 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.) View transaction list Journal entry worksheet 2 3 4 5 > Received $68,000 cash from the investors who organized Downer.com Corporation. Note: Enter debits before credits. Transaction General Journal Debit Credit a. Record entry Clear entry View general journal3. 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 Total current liabilities Noncurrent assets Total Liabilities Shareholders' equity Total shareholders' equity Total assets Total liabilities & shareholders' equity