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

During Year 1, Ashkar Company ordered a machine on January 1 at an invoice price of $21,000. On the date of delivery, January 2, the company paid $9,000 on the machine, with the balance on credit at 8 percent interest due in six months. On January 3, it paid $1,200 for freight on the machine. On January 5, Ashkar paid installation costs relating to the machine amounting to $2,200. On July 1, the company paid the balance due on the machine plus the interest. On December 31 (the end of the accounting period), Ashkar recorded depreciation on the machine using the straight-line method with an estimated useful life of 10 years and an estimated residual value of $3,300.

Required:

1. Indicate the effects (accounts, amounts, and + or ) of each transaction on the accounting equation. Use the following schedule: (If the transaction does not impact the accounting equation choose "No effect" in the first column under "Assets".)

2. Compute the acquisition cost of the machine.

Date January 1 No effect January 2 January 3 January 5 July 1 Assets Liabilities Stockholders' Equity