Assume Down, Inc., was organized on May 1 to compete with Despair, Inc
Question # 00750705
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Updated on: 02/05/2020 04:26 AM Due on: 02/05/2020
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.
Prepare a classified balance sheet at May 31. Include Retained Earnings with a balance of zero.
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Rating:
/5
Solution: Assume Down, Inc., was organized on May 1 to compete with Despair, Inc