Required information Assume Down, Inc., was organized on May 1 to compete with Despair, Inc.-a company that sells de-motivational posters and office products. Down, Inc., encountered the following events during its first month of operations. a. Received $37,000 cash from the investors who organized Down, Inc. b. Borrowed $16,000 cash and signed a note due in two years. c. Ordered equipment costing $19,000. d. Purchased $7,000 in equipment, paying $2,000 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. 3. Prepare a classified balance sheet at May 31. Include Retained Earnings with a balance of zero. DOWN.INC Balance Sheet At May 31 Assets Liabilities Current Assets Current Liabilities Cash Accounts Payable Notes Payable (short-term) Total Current Assets 0 Total Current Liabilities 0 Total Liabilities 0 Stockholders' Equity Common Stock Retained Earnings 0 Total Stockholders' Equity 0 Total Liabilities and Stockholders' Equity Total Assets $ 0