Questions 911 of 23 E211 Recording Journal Entries and Prepa

Questions 9-11 (of 23) E2-11 Recording Journal Entries and Preparing a Classified Balance Sheet [LO 2-1, LO 2-3, LO 2-5 Assume Down.com was organized on May 1, to compete with Despair.com-a company that sells de- motivational posters and office products. The following events occurred during the first month of Down.com\'s a. Received $36,000 cash from the investors who organized Down.com Corporation. b. Borrowed $15,000 cash and signed a note due in two years. c. Ordered equipment costing $18,000. d. Pur e. Recelved the equipment ordered in (d. paid for half of it, and put the rest on account. $6,000 in equipment, paying $2,000 in cash and signing a six-month note for the balance. References Section Break E2-11 ing Journal Entries and Preparing a Classified Balance Sheet [LO 2-1, LO 2-3, LO 2-5] value: 0.43 points E2-11 Part1

Solution

Classified balance sheet :

ASSETS	AMOUNT	LIABILITIES AND STOCKHOLDER\'S EQUITY	AMOUNT
CURRNT ASSETS		CURRENT LIABILITES
Cash	40000	Account payable	9000
		Short term Notes payable	4000
NON CURRENT ASSETS		LONG TERM LIABILITIES
Equipment	24000	Long term notes payable	15000
		STOCKHOLDER\'S EQUITY
		Common stock	36000
TOTAL ASSETS	64000	TOTAL LIABILITIES AND STOCKHOLDER\'S EQUITY	64000