Conover Corp. ordered a machine on January 1, 2014, at a purchase price of $32,940. On the date of delivery, January 2, 2014, the company paid $8,600 on the machine and signed a note payable for the balance. On January 3, 2014, it paid $310 for freight on the machine. On January 5, Conover paid installation costs relating to the machine amounting to $1,800. On December 31, 2014 (the end of the accounting period), Conover recorded depreciation on the machine using the straight-line method with an estimated useful life of 10 years and an estimated residual value of $3,050.

E9-3 Determining Financial Statement Effects of an Asset Acquisition and Straight-Line Depreciation [LO2, L03] Conover Corp. ordered a machine on January 1, 2014, at a purchase price of $32,940. On the date of delivery, January 2, 2014, the company paid $8,600 on the machine and signed a note payable for the balance. On January 3, 2014, it paid $310 for freight on the machine. On January 5, Conover paid installation costs relating to the machine amounting to $1,800. On December 31, 2014 (the end of the accounting period), Conover recorded depreciation on the machine using the straight-line method with an estimated useful life of 10 years and an estimated residual value of $3,050. Required 1. Indicate the effects (accounts, amounts) of each transaction (on January 1,2, 3, and 5) on the accounting equation. Use the following schedule: (Enter any decreases to accounts with a minus sign. Stockholders' Equity Date Jan. 1 Jan. 2 Assets Jan. 3 Jan. 5