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.

Received $43,000 cash from the investors who organized Down, Inc. Borrowed $16,000 cash and signed a note due in two years. Ordered equipment costing $25,000. Purchased $7,000 in equipment, paying $3,000 in cash and signing a six-month note for the balance. 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.