On January $2,$ Summers Company received a machine that the company had ordered with an invoice price of $$106,000.$

Freight costs of $$840$ were paid by the vendor per the sales agreement. The company exchanged the following on

January $2$ to acquire the machine:

a$.$ Issued $2,400$ shares of Summers Company common stock, par value $$1($market value, $$3\mathrm{.}50$ per share$).$

b$.$ Signed a note payable for $$52,000$ with an $10\mathrm{.}3$ percent interest rate $($principal plus interest are due April $1$ of the

current year$).$

c$.$ The balance of the invoice price was on account with the vendor, to be paid in cash by January $12.$

On January $3,$ Summers Company paid $$1,800$ cash for installation costs to prepare the machine for use.

On January $12,$ Summers Company paid the balance due on its accounts payable to the vendor.

P$8-1$ Part $3$

Indicate the effects of the purchase and subsequent cash payment on the accounting equation.

Note: Enter decreases to account categories as negative amounts.