Assume Downer.com was organized on May 1, to compete with Despair, Inc.®—a company that sells demotivational
posters and office products. The following events occurred during the first month of Downer.com's operations.
- Received $64,000 cash from the investors who organized Downer.com Corporation
- Borrowed $22,000 cash and signed a note due in two years
- Ordered computer equipment costing $17,000
- Purchased $10,000 in equipment, paying $2,400 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
create a balance sheet at May 31. Include retained earnings with a balance of zero.