Required: 2. Record the purchase on January 2 and the subsequent payment on January 12. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Date General Journal Debit Credit 1 January 02 87,400 Equipment Cash Common stock Additional paid-in-capital Note payable Accounts payable 2,400 2,000 5,000 60,000 18,000 2 January 12 -18,000 Accounts payable Cash 18,000 [The following information applies to the questions displayed below. On January 2, Summers Company bought a machine for use in operations. The machine has an estimated useful life of eight years and an estimated residual value of $2,600. The company provided the following expenditures: a. Invoice price of the machine, $85,000. b. Freight paid by the vendor per sales agreement, $1,000. c. Installation costs, $2,400 paid in cash. d. Payment was made as follows: On January 2: The installation costs were paid in cash. Summers Company common stock, par $1; 2,000 shares (market value, $3.50 per share). Note payable, $60,000; 11.5 percent (principal plus interest due April 1 of the current year). Balance of invoice price to be paid in cash. The invoice allows for a 3 percent discount for cash paid by January 12. On January 12 Summers Company paid the balance due. 3. Indicate the accounts, amounts, and effects (+ for increase and - for decrease) of the purchase and subsequent cash payment on the accounting equation. Use the following structure: Date Assets Liabilities Jan 02 Equipment Cash Cash 87,400 Note payable (2,400) Accounts payable (18,000) Accounts payable Stockholders' Equity 60,000 Common stock 18,000 Additional paid-in capital (18,000 2,000 5,000 Jan 12