On January 2, Summers Company received a machine that the company had ordered with an invoice price of $106,000. Freight costs of $690 were paid by the vendor per the sales agreement. The company exchanged the following on January 2 to acquire the machine: a. Issued 1,700 shares of Summers Company common stock, par value $1 (market value, $3.50 per share). b. Signed a note payable for $62,000 with an 11.4 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 $2,700 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. P8-1 Part 3 3. Indicate the effects of the purchase and subsequent cash payment on the accounting equation. (Enter decreases to account categories as negative amounts.) 3. Indicate the effects of the purchase and subsequent cash payment on the accounting equation. (Enter decreases to account categories as negative amounts.) Date Assets Liabilities Stockholders' Equity Jan 02 Equipment 106,000 Note payable 62,000 Common stock 1,700 Accounts payable Additional paid-in-capital Jan 03 Equipment Cash 2,700 2,700 Jan 12 Cash