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4 Part 1 of 2 4 points Required information P 8 - 1 ( Algo ) Explaining the Nature of a Long - Lived Asset
Part of
points
Required information
PAlgo Explaining the Nature of a LongLived Asset and Determining and Recording the Financial Statement Effects of Its Purchase LO
The following information applies to the questions displayed below.
On January Summers Company received a machine that the company had ordered with an invoice price of $ Freight costs of $ were paid by the vendor per the sales agreement. The company exchanged the following on January to acquire the machine:
a Issued shares of Summers Company common stock, par value $market value, $ per share
b Signed a note payable for $ with an percent interest rate principal plus interest are due April of the current year
c The balance of the invoice price was on account with the vendor, to be paid in cash by January
On January Summers Company paid $ cash for installation costs to prepare the machine for use.
On January Summers Company paid the balance due on its accounts payable to the vendor.
P Part
Required:
Record the purchase on January the installation costs on January and the subsequent payment on January
Note: If no entry is required for a transactionevent select No journal entry required" in the first account field.
Answer is not complete.
tableNoDate,General Journal,Debit,CreditJanuary Equipment,times Common stock,times Additional paidincapital,Vtimes Note payable,times Accounts payable,Vtimes January Equipment,VCash,VJanuary Accounts payable,VCash,Vvv
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