PB-1 (Algo) Explaining the Nature of a Long-Lived Asset and Determining and Recording the Financial Statement Effects of Its Purchase LO8-1, 8-2 [The following information applies to the questions displayed below.] On January 2, Summers Company received a machine that the company had ordered with an Involce price of $101.000. Freight costs of $650 were paid 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. $3.50 per share). b. Signed a note payable for $53,000 with an 10.3 percent Interest rate (principal plus interest are due April 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 paid $2,300 cash for Installation costs to prepare the machine for use. On January 12. Summers Company paid the balance due on Its accounts payable to the vendor. P8-1 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.
PB-1 (Algo) Explaining the Nature of a Long-Lived Asset and Determining and Recording the Financial Statement Effects of Its Purchase LO8-1, 8-2 [The following information applies to the questions displayed below.] On January 2, Summers Company received a machine that the company had ordered with an Involce price of $101.000. Freight costs of $650 were paid 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. $3.50 per share). b. Signed a note payable for $53,000 with an 10.3 percent Interest rate (principal plus interest are due April 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 paid $2,300 cash for Installation costs to prepare the machine for use. On January 12. Summers Company paid the balance due on Its accounts payable to the vendor. P8-1 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required Information
P8-1 (Algo) Explaining the Nature of a Long-Lived Asset and Determining and Recording the Financial
Statement Effects of Its Purchase LO8-1, 8-2
[The following information applies to the questions displayed below.]
On January 2 Summers Company received a machine that the company had ordered with an Involce price of $101.000.
Freight costs of $650 were paid 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, $3.50 per share).
b. Signed a note payable for $53,000 with an 10.3 percent Interest rate (principal plus Interest are due April 1 of the
current year.
c. The balance of the Involce price was on account with the vendor, to be paid in cash by January 12
On January 3, Summers Company paid $2,300 cash for Installation costs to prepare the machine for use.
On January 12, Summers Company paid the balance due on Its accounts payable to the vendor.
P8-1 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.
View transaction Bet
Journal entry worksheet
<
2
Record the purchase of equipment.
Date
January 02
3
Note: Enter debits before crecits
Record entry
General Journal
Clear entry
Debit
Credit
View general Journal](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F86552e49-3e63-4051-aeec-a5a2f22d05b4%2F7653444d-2e66-4920-951b-b1cb3767cc85%2F9xz2md_processed.jpeg&w=3840&q=75)
Transcribed Image Text:!
Required Information
P8-1 (Algo) Explaining the Nature of a Long-Lived Asset and Determining and Recording the Financial
Statement Effects of Its Purchase LO8-1, 8-2
[The following information applies to the questions displayed below.]
On January 2 Summers Company received a machine that the company had ordered with an Involce price of $101.000.
Freight costs of $650 were paid 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, $3.50 per share).
b. Signed a note payable for $53,000 with an 10.3 percent Interest rate (principal plus Interest are due April 1 of the
current year.
c. The balance of the Involce price was on account with the vendor, to be paid in cash by January 12
On January 3, Summers Company paid $2,300 cash for Installation costs to prepare the machine for use.
On January 12, Summers Company paid the balance due on Its accounts payable to the vendor.
P8-1 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.
View transaction Bet
Journal entry worksheet
<
2
Record the purchase of equipment.
Date
January 02
3
Note: Enter debits before crecits
Record entry
General Journal
Clear entry
Debit
Credit
View general Journal
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