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theres 3 parts to this question Required information E2-11 (Algo) Recording Journal Entries and Preparing a Classified Balance Sheet (LO 2-1, LO 2-2, LO 2-4,
theres 3 parts to this question
Required information E2-11 (Algo) Recording Journal Entries and Preparing a Classified Balance Sheet (LO 2-1, LO 2-2, LO 2-4, LO 2-5) 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 $44,000 cash from the investors who organized Down, Incorporated b. Borrowed $17,000 cash and signed a note due in two years. c. Ordered equipment costing $12,000. d. Purchased $8,000 in equipment, paying|$3,000 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. E2-11 (Algo) Part 1 1. Summarize the financial effects of items (a)-(e) in a table(Enter any decreases to account balances with a minus sign.) Assets Cash Stockholders Equity Common Stock Equipment Liabilities Short-term Notes Payable 0 Accounts Payable Long-term Notes Payablo 0 Beginning 0 0 0 + 0 + a + b. + c + d. + D 0 0 0 Ending 0 Journal entry worksheet 3 4 2 5 Received $44,000 cash from the investors who organized Down, Incorporated Record the transaction. Note: Enter debits before credits Generaltournal Debit Transaction Credit Required information Journal entry worksheet 1 2 3 5 Purchased $8,000 in equipment, paying $3,000 in cash and signing a six- month note for the balance. Record the transaction. Note: Enter debits before credits. Dobit Credit Transaction General Journal d Journal entry worksheet 1 2 3 4 Received the equipment ordered in (c), paid for half of it, and put the rest on account. Record the transaction. Note: Enter debits before credits. Transaction General Journal Debit Credit e Step by Step Solution
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