Thank you Received 47000 cash from the investors who organi

Thank you.

. Received $47,000 cash from the investors who organized Down.com Corporation . Borrowed $20,000 cash and signed a note due in two years. Ordered equipment costing $15,000 . Purchased $11,000 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.

Solution

Assets Amount $ Liabilities Amount $ Cash 55,500 Accounts payable 7500 Accounts Receivable 0 Notes payable- Short term 7,000 Equipment 26,000 Notes payable - Long term 20,000 Common stock 47,000 Retained earnings 0 Total Assets 81,500 Total Liabilities and Shareholders equity 81,500