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Business, 13.04.2021 01:00 jettskii214
On January 2, Summers Company received a machine that the company had ordered with an invoice price of $100,000. Freight costs of $820 were paid by the vendor per the sales agreement. The company exchanged the following on January 2 to acquire the machine: a. Issued 1,500 shares of Summers Company common stock, par value $1 (market value, $3.50 per share). b. Signed a note payable for $64,000 with an 11.7 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 $2,500 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.
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On January 2, Summers Company received a machine that the company had ordered with an invoice price...
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