Assume Downcom was organized on May 1 to compete with Despai

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 $39,000 cash from the investors who organized Down.com Corporation. b. Borrowed $18,000 cash and signed a note due in two years. c. Ordered equipment costing $21,000. d. Purchased $9,000 in equipment, paying $3,000 in cash and signing a six-month note for the balance. e. Received the equipment ordered in (. paid for half of it, and put the rest on account 10.00 points Required: 1. Summarize the financial effects of items (aj-(e) in a table. (Enter any decreases to account balances with a minus sign.) Liabilities Accounts ST Notes LT Notes Payable Equity Commorn Stock Cash Equipment Payable Payable 39,000 18,000 39,000 18,000 (3,000 (10,500 43,500 9,000 21,000 30,000 6,000 10,500 10,500 End 6,000 18,000 39,000

Solution

Except some very minor corrections ( as below) , all are correct

Question 1
Errors rectified	Down.com
No.	Transaction	General Journal	Debit	Credit
1..	a.	Cash	39000
		Common Stock		39000
2..	b.	Cash	18000
		LT Notes Payable		18000
	Ques. 2	Deliberate Speed Corporation
		Cash account
		Beg.bal.	42750
		a.	430000
		b.	143000
		c.		102500
		d.		227000
		End. Bal.		286250