onnect Assignment Saved E9-3 Determining Financial Statement Effects of an Asset Acquisition and Straight-Line Depreciation [LO9-2, LO9-3] Conover Corp. ordered a machine on January 1 at a purchase price of $27,550. On delivery, January 2, the company paid $7,500 on the machine and signed a note payable for the balance. On January 3, it paid $200 for freight on the machine. On January 5, Conover paid installation costs relating to the machine amounting to $1,250. On December 31 (the end of the accounting period), Conover recorded depreciation on the machine using the straight-line method with an estimated useful life of ten years and an estimated residual value of $2,500. 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.) Date Jan. 1 Jan 2 Jan 3 Jan 5 Assets 2. Compute the acquisition cost of the machine. Acquisition cost Liabilities Help Save & Exit Su 13 Stockholders' Equity