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[The following information applies to the questions displayed below.] On January 2, 2015, Summers Company bought a machine for use in operations. The machine has
[The following information applies to the questions displayed below.]
On January 2, 2015, Summers Company bought a machine for use in operations. The machine has an estimated useful life of eight years and an estimated residual value of $4,400. The company provided the following expenditures: |
a. | Invoice price of the machine, $103,000. |
b. | Freight paid by the vendor per sales agreement, $2,900. |
c. | Installation costs, $3,100 paid in cash. |
d. | Payment was made as follows: |
On January 2: | |
The installation costs were paid in cash. | |
Summers Company common stock, par $1; 4,000 shares (market value, $1.50 per share). | |
Note payable, $62,000; 10.5 percent due April 16, 2015 (principal plus interest). | |
Balance of invoice price to be paid in cash. The invoice allows for a 5 percent discount for cash paid by January 12. | |
On January 15: | |
Summers Company paid the balance due. |
Required: 2. Record the purchase on January 2 and the subsequent payment on January 15. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 Record the purchase of equipment. Note: Enter debits before credits. General Journal Date Debit Credit January 02 Record entry View general journal Clear entry Required: 2. Record the purchase on January 2 and the subsequent payment on January 15. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 Record the balance paid from the January 2 purchase. Note: Enter debits before credits. Date General Journal Debit Credit January 15 Record entry Clear entry View general journal
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