Required information [The following information applies to the questions displayed below.] Assume Down, Incorporated, was organized on May 1 to compete with Despair, Incorporated-a company that sells de- motivational posters and office products. Down, Incorporated, encountered the following events during its first month of operations. a. Received $34,000 cash from the investors who organized Down, Incorporated b. Borrowed $19,000 cash and signed a note due in two years. c. Ordered equipment costing $16,000. d. Purchased $10,000 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. Required: 1. Summarize the financial effects of items (a)-(e) in a table. (Enter any decreases to account balances with a minus sign.) Beginning a. b. C. d. e. Ending Cash Assets 0 0 Equipment = 0 = 0 = = = = = Accounts Payable 0 0 Liabilities Short-term Notes Payable 0 0 Long-term Notes Payable + + 0 + + + + + + 0 + Stockholders' Equity Common Stock 0 0
Required information [The following information applies to the questions displayed below.] Assume Down, Incorporated, was organized on May 1 to compete with Despair, Incorporated-a company that sells de- motivational posters and office products. Down, Incorporated, encountered the following events during its first month of operations. a. Received $34,000 cash from the investors who organized Down, Incorporated b. Borrowed $19,000 cash and signed a note due in two years. c. Ordered equipment costing $16,000. d. Purchased $10,000 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. Required: 1. Summarize the financial effects of items (a)-(e) in a table. (Enter any decreases to account balances with a minus sign.) Beginning a. b. C. d. e. Ending Cash Assets 0 0 Equipment = 0 = 0 = = = = = Accounts Payable 0 0 Liabilities Short-term Notes Payable 0 0 Long-term Notes Payable + + 0 + + + + + + 0 + Stockholders' Equity Common Stock 0 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Required information
[The following information applies to the questions displayed below.]
Assume Down, Incorporated, was organized on May 1 to compete with Despair, Incorporated-a company that sells de-
motivational posters and office products. Down, Incorporated, encountered the following events during its first month of
operations.
a. Received $34,000 cash from the investors who organized Down, Incorporated
b. Borrowed $19,000 cash and signed a note due in two years.
c. Ordered equipment costing $16,000.
d. Purchased $10,000 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.
Required:
1. Summarize the financial effects of items (a)-(e) in a table. (Enter any decreases to account balances with a minus sign.)
Beginning
a.
b.
C.
d.
e.
Ending
Cash
Assets
0
0
Equipment
=
0 =
||
=
|||
=
=
=
=
0 =
Accounts
Payable
0
O
Liabilities
Short-term
Notes
Payable
0
0
Long-term
Notes
Payable
+
0 +
0
+
+
+
+
+
+
Stockholders'
Equity
Common
Stock
0
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffa413bcf-f4d4-4563-8c5c-bfbbe2a7d62c%2F964842c5-db91-4e8f-992d-5a8bffad0dc6%2F8m9b9l_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Assume Down, Incorporated, was organized on May 1 to compete with Despair, Incorporated-a company that sells de-
motivational posters and office products. Down, Incorporated, encountered the following events during its first month of
operations.
a. Received $34,000 cash from the investors who organized Down, Incorporated
b. Borrowed $19,000 cash and signed a note due in two years.
c. Ordered equipment costing $16,000.
d. Purchased $10,000 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.
Required:
1. Summarize the financial effects of items (a)-(e) in a table. (Enter any decreases to account balances with a minus sign.)
Beginning
a.
b.
C.
d.
e.
Ending
Cash
Assets
0
0
Equipment
=
0 =
||
=
|||
=
=
=
=
0 =
Accounts
Payable
0
O
Liabilities
Short-term
Notes
Payable
0
0
Long-term
Notes
Payable
+
0 +
0
+
+
+
+
+
+
Stockholders'
Equity
Common
Stock
0
0
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