Required information

E$2-11($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 demotivational posters and office products. Down, Incorporated, encountered the following events during its first month of operations.

a$.$ Received $$48,000$ cash from the investors who organized Down, Incorporated

b$.$ Borrowed $$15,000$ cash and signed a note due in two years.

c$.$ Ordered equipment costing $$16,000.$

d$.$ Purchased $$6,000$ in equipment, paying $$4,000$ 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.

E$2-11($Algo$)$ Part $1$

Required:

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