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 $31,000 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 $13,000. 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. Required: 1. Summarize the financial effects of items (a)-(e) in a table. (Enter any decreases to account balances with a minus sign.) Assets Liabilities Stockholders' Equity Cash Equipment Accounts Payable Short-term Notes Payable 0 Long-term Notes Payable + Common Stock Beginning 0 O II 0 0 + 0 a. II + b. + C. = + d. + e. II + Ending 0 0 II 0 0 o + 0 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 View journal entry worksheet No Transaction General Journal Debit Credit 1 a Accounts Payable 3. Prepare a classified balance sheet at May 31. Include Retained Earnings with a balance of zero. X Answer is not complete. DOWN.INCORPORATED Balance Sheet At May 31 Assets Liabilities Current Assets Current Liabilities Cash $ 38,500 $ 5,000 Notes Payable (short-term) Accounts Payable 6,500 Total Current Assets 38,500 Total Current Liabilities > 11,500 > > Equipment 20,000 Notes Payable (long-term) 16,000 00 Total Liabilities 27,500 Common Stock > 31,000 Total Stockholders' Equity Total Liabilities and Stockholders' Equity 31,000 58,500 Total Assets 58,500 $