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P 8 - 1 ( Algo ) Explaining the Nature of a Long - Lived Asset and Determining and Recording the Financial Statement Effects of
PAlgo Explaining the Nature of a LongLived Asset and Determining and Recording the Financial Statement Effects of Its Purchase LO
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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:
Issued shares of Summers Company common stock, par value $market value, $ per share
Signed a note payable for $ with an percent interest rate principal plus interest are due April of the current year
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.
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