Capital stock was issued to Bill Michael in exchange for $120,000 cash.
* Purchased $60,000 of equipment by making a $25,000 cash down payment and signing a note payable for the balance.
* Made a $23,000 cash payment on the note payable from the purchase of equipment.
* Sold a piece of equipment for cash of $6,000. The equipment was sold at cost, so there is no gain or loss on the sale.