Prepare a classified balance sheet at May 31. Include Retained Earnings with a balance of zero.

E2-11 Recording Journal Entries and Preparing a Classified Balance Sheet [LO 2-1, LO 2-3, LO 2-5] Assume Down.com was organized on May 1to compete with Despair.com-a company that sells de- motivational posters and office products. The following events occurred during the first month of Down.com's operations a. Received $60,000 cash from the investors who organized Down.com Corporation b. Borrowed $20,000 cash and signed a note due in two years. c. Ordered equipment costing $16,000 d. Purchased $9,000 in equipment, paying $2,000 in cash and signing a six-month note for the balance. e. Received the equipment ordered in ), paid for half of it, and put the rest on account. References