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Required Information

P$8-1($Algo$)$ Exploining the Nature of a Long$-$Llved Asset and Determining and Recordling the Financlal Statement Effects of Its Purchase LO$8-1,8-2$

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

On January $2$ Summers Company recelved a machime that the company had ordered with an Involce price of $$101,000.$ Frelght costs of $$650$ were pald by the vendor per the sales agreement. The company exchanged the following on January $2$ to acquire the machime:

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

b$.$ Signed a note payable for $$53,000$ with an $10\mathrm{.}3$ percent Interest rate $($primelpal plus interest are due April $1$ of the current year$).$

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

On lanuary $3,$ Summers Company pald $$2,300$ cash for Installation costs to prepare the machine for use.

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

P$8-1$ Part $3$

$3.$ Indlcate the effects of the purchase and subsequent cash payment on the accounting equation.

Note: Enter decieases to account categorles as negative amounts.