a Received 47000 cash from the investors who organized Downc

a. Received $47,000 cash from the investors who organized Down.com Corporation. b. Borrowed $20,000 cash and signed a note due in two years. c. Ordered equipment costing $15,000. d. Purchased $11,000 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. References Section Break E2-11 Recording Journal Entries and Preparing a Classified Balance Sheet [LO 2-1, LO 2-3, LO 2-5) alue 00 points 2-11 Part 1 equired Summarize the financial effects of items (a)-(e) in a table. (Enter any decreases to account balances with a minus sign.) ers Assets Liabilities Equity Accounts ST Notes Payable LT Notes Payable Cash Equipment Common Stock Payable Beg End

Solution

1)

**order of equipment is not a financial transaction to be recorded in books.

2)

	Assets	=	Liabilities	+	stockholders equity
	cash	Equipment		Accounts payable	ST note payable	LT note payable		common stock
Beg	0	0		0	0	0		0
a	47000							47000
b	20000					20000
c	0	0		0	0	0		0
d	-4000	11000			7000
e	-7500	15000		7500     [15000*1/2]
end	55500	26000		7500	7000	20000		47000