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Part $1$ of $2$

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P$8-1($Algo$)$ Explaining the Nature of a Long$-$Lived Asset and Determining and Recording the Financial Statement Effects of Its Purchase LO$8-1,8-2$

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

On January $2,$ Summers Company received a machine that the company had ordered with an invoice price of $$100,000.$ Freight costs of $$790$ were paid by the vendor per the sales agreement. The company exchanged the following on January $2$ to acquire the machine:

a$.$ Issued $2,200$ shares of Summers Company common stock, par value $$1($market value, $$3\mathrm{.}50$ per share$).$

b$.$ Signed a note payable for $$50,000$ with an $10\mathrm{.}5$ 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 $$2,100$ 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.

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.

Answer is not complete.

$\backslash$table$[[$No$,$Date,General Journal,Debit,Credit$],[1,$January $02,$Equipment,$(,100,790\backslash$times $,],[,$Common stock,$(,2,200\backslash$times $,],[,$Additional paid$-$in$-$capital,V$,5,500\backslash$times $,],[,$Note payable,$2,50,000\backslash$times $,],[,$Accounts payable,V$,43,090\backslash$times $,],[2,$January $03,$Equipment,V$,2,100,],[,$Cash,$($V$),,2,100],[3,$January $12,$Accounts payable,V$,42,300,],[,$Cash,$($V$),,42,300$vv$]]$