! Required information [The following information applies to the questions displayed below.] Assume Down, Incorporated, was...

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! Required information [The following information applies to the questions displayed below.] Assume Down, Incorporated, was organized on May 1 to compete with Despair, Incorporated-a company that sells de-motivational posters and office products. Down, Incorporated, encountered the following events during its first month of operations. a. Received $43,000 cash from the investors who organized Down, Incorporated b. Borrowed $16,000 cash and signed a note due in two years. c. Ordered equipment costing $25,000. d. Purchased $7,000 in equipment, paying $3,000 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. Assets Current Assets Cash Total Current Assets Equipment Total Assets DOWN.INCORPORATED Balance Sheet At May 31 0 Current Liabilities Accounts Payable Liabilities Notes Payable (short-term) Total Current Liabilities Notes Payable (long-term) 0 32,000 Total Liabilities 0 Stockholders' Equity Common Stock Retained Earnings Total Stockholders' Equity 0 32,000 Total Liabilities and Stockholders' Equity $ 0 ! Required information [The following information applies to the questions displayed below.] Assume Down, Incorporated, was organized on May 1 to compete with Despair, Incorporated-a company that sells de-motivational posters and office products. Down, Incorporated, encountered the following events during its first month of operations. a. Received $43,000 cash from the investors who organized Down, Incorporated b. Borrowed $16,000 cash and signed a note due in two years. c. Ordered equipment costing $25,000. d. Purchased $7,000 in equipment, paying $3,000 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. Assets Current Assets Cash Total Current Assets Equipment Total Assets DOWN.INCORPORATED Balance Sheet At May 31 0 Current Liabilities Accounts Payable Liabilities Notes Payable (short-term) Total Current Liabilities Notes Payable (long-term) 0 32,000 Total Liabilities 0 Stockholders' Equity Common Stock Retained Earnings Total Stockholders' Equity 0 32,000 Total Liabilities and Stockholders' Equity $ 0