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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

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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 $106,000. Freight costs of $690 were paid by the vendor per the sales agreement. The company exchanged the following on January 2 to acquire the machine: a. Issued 1,700 shares of Summers Company common stock, par value $1 (market value, $3.50 per share). b. Signed a note payable for $62,000 with an 11.4 percent interest rate (principai 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 $2,700 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. 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 $106,000. Freight costs of $690 were paid by the vendor per the sales agreement. The company exchanged the following on January 2 to acquire the machine: a. Issued 1,700 shares of Summers Company common stock, par value $1 (market value, $3.50 per share). b. Signed a note payable for $62,000 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 $2,700 cash for installation costs to prepare the machine for use. On January 12, Summers Compary paid the batance due on its accounts payable to the vendor. 3. Indicate the effects of the purchase and subsequent cash payment on the accounting equation. Note: Enter decreases to account categories as negative amounts

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