Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: LibbyShort

7th Edition

78111021, 978-0078111020

More Books

Students also viewed these Accounting questions

Question

What are the steps that the EEOC uses once a charge is filed?

Answered: 1 week ago

Question

What would you do?

Answered: 1 week ago