a. Received $60,000 cash from the investors who organized Down, Incorporated b. Borrowed $20,000 cash and signed a note due in two years. c. Ordered equipment costing $16,000. d. Purchased $9,000 in equipment, paying $2,000 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. Prepare a classified balance sheet at May 31. Include Retained Earnings with a balance of zero.
a. Received $60,000 cash from the investors who organized Down, Incorporated b. Borrowed $20,000 cash and signed a note due in two years. c. Ordered equipment costing $16,000. d. Purchased $9,000 in equipment, paying $2,000 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. Prepare a classified balance sheet at May 31. Include Retained Earnings with a balance of zero.
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 9PB: Pickles R Us is a pickle farm located in the Northeast. The following transactions take place: A. On...
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![a. Received $60,000 cash from the investors who organized Down, Incorporated
b. Borrowed $20,000 cash and signed a note due in two years.
c. Ordered equipment costing $16,000.
d. Purchased $9,000 in equipment, paying $2,000 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.
3. Prepare a classified balance sheet at May 31. Include Retained Earnings with a balance of zero.
Current Assets
Cash
Total Current Assets
Equipment
Total Assets
Assets
DOWN.INCORPORATED
Balance Sheet
At May 31
$
70,000
70,000
25,000
Liabilities
Current Liabilities
Common Stock
Notes Payable (long-term)
$ 95,000
$
$
60,000
20,000
80,000
80,000
0
80,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Feb359d07-eca4-4426-9f90-7d97299ce282%2Fcbf52d8c-5ff4-48ab-9ed4-dfe3db77f8f6%2F7ni5fhj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:a. Received $60,000 cash from the investors who organized Down, Incorporated
b. Borrowed $20,000 cash and signed a note due in two years.
c. Ordered equipment costing $16,000.
d. Purchased $9,000 in equipment, paying $2,000 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.
3. Prepare a classified balance sheet at May 31. Include Retained Earnings with a balance of zero.
Current Assets
Cash
Total Current Assets
Equipment
Total Assets
Assets
DOWN.INCORPORATED
Balance Sheet
At May 31
$
70,000
70,000
25,000
Liabilities
Current Liabilities
Common Stock
Notes Payable (long-term)
$ 95,000
$
$
60,000
20,000
80,000
80,000
0
80,000
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