Required information P8-1 (Algo) Explaining the Nature of a Long-Lived Asset and Determining and Recording the Financial Statement Effects of Its Purchase LO8-1, 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 $100,000. Freight costs of $880 were paid by the vendor per the sales agreement. The company exchanged the following on January 2 to acquire the machine: a. Issued 2,200 shares of Summers Company common stock, par value $1 (market value, $3.50 per share) b. Signed a note payable for $64,000 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 $2,100 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.) Stockholders' Equity Date Assets Liabilities + Jan 02 Jan 03 Jan 12