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Required information

P$8-1($Algo$)$ Exploining the Noture of a Long$-$Llved Asset and Determining ond Recording the Finenclal Statement Effects of Its Purchase L$08-1,8-2$

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

On January $2$ Summers Company recelved a machine that the company had ordered with an involce price of $$101\mathrm{.}000.$ Freight costs of $$650$ were pald by the vendor per the sales agreement. The company exchanged the following on January $2$ to acquire the machine:

a$.$ Issued $1,400$ shares of Summers Company common stock, par value $$1($market value, $$3\mathrm{.}50$ per share$).$

b$.$ Signed a note payable for $$53,000$ with an $10,3$ percent interest rate $($principal plus Interest are due Aprill $1$ 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 pald $$2,300$cash for Installation costs to prepare the machine for use.

On January $12.$ Summers Company pald the balance due on its accounts payable to the vendor:

P$8-1$ Part $2$

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

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Record the purchase of equipment.

Note. Enter dehus betrie crecen:

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$January $02,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,]]$