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 $49,000 cash from the investors who organized Down, Inc.

Borrowed $16,000 cash and signed a note due in two years.

Ordered equipment costing $17,000.

Purchased $7,000 in equipment, paying $4,000 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.

Required:

Summarize the financial effects of items (a)(e) in a table. (Enter any decreases to account balances with a minus sign.)

a. Received $49,000 cash from the investors who organized Down, Inc. b. Borrowed $16,000 cash and signed a note due in two years. c. Ordered equipment costing $17,000. d. Purchased $7,000 in equipment, paying $4,000 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. Required: 1. Summarize the financial effects of items (a)-(e) in a table. (Enter any decreases to account balances with a minus sign.) Assets Stockholders' Equity Common Stock Liabilities ST Notes Payable Accounts Payable Cash Equipment LT Notes Payable Beg 49.000 16.000 ale 7.000 17.000 9 Prev 10 11 of 11 Next >