a. Received $47,000 cash from the investors who organized Down.com Corporation.

Question

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

Explanation / Answer

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

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