P$8-1($Algo$)$ Explaining the Nature of a Long$-$Lived Asset and Determining and Recording the Financial Statement Effects of Its Purchase LO$8-1,8-2$

$[$The following information applies to the questions displayed below.$]$

On January $2,$ Summers Company received a machine that the company had ordered with an invoice price of $$93,000.$ Freight costs of $$720$ were paid by the vendor per the sales agreement. The company exchanged the following on January $2$ to acquire the machine:

a$.$ Issued $1,300$ shares of Summers Company common stock, par value $$1($market value, $$3\mathrm{.}50$ per share$).$

b$.$ Signed a note payable for $$63,000$ with an $11\mathrm{.}2$ 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 $$3,000$ 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 $2$

Required:

$2.$ Record the purchase on January $2,$ the installation costs on January $3,$ and the subsequent payment on January $12.$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Journal entry worksheet

$1$

$2$

$3$

Record the purchase of equipment.

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Deblt,Credit$]]$