Required information

[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 $85,000. Freight costs of $1,000 were paid by the vendor per the sales agreement. The company exchanged the following on January 2 to acquire the machine:

a. Issued 2,000 shares of Summers Company common stock, par value $1 (market value, $3.50 per share).

b. Signed a note payable for $60,000 with an 11.5 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 $2,400 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.

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.

Frame Required information [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 $85,000. Freight costs of $1,000 were paid by the vendor per the sales agreement. The company exchanged the following on January 2 to acquire the machine: a. Issued 2,000 shares of Summers Company common stock, par value $1 (market value, $3.50 per share). b. Signed a note payable for $60,000 with an 11.5 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 $2,400 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. 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 Record the purchase of equipment. Note: Enter debits before credits. Journal entry worksheet Record the installation costs on January 3. Note: Enter debits before credits. Journal entry worksheet Record the balance paid from the January 2 purchase. Note: Enter debits before credits