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 de$-$

motivational posters and office products. Down, Incorporated, encountered the following events during its first month of

operations.

a$.$ Received $$38,000$ 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 $$20,000.$

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 $($c$),$ paid for half of it$,$ and put the rest on account.

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

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.$)$

Journal entry worksheet

Received $$38,000$ cash from the investors who organized Down, Incorporated

Record the transaction.

Note: Enter debits before credits.