Tristar Production Company began operations on September 1, 2021. Listed below are a number of transactions that occurred during Its first four months of operations. (FV of $1. PV of $1. FVA of $1. PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1. On September 1, the company acquired five acres of land with a building that will be used as a warehouse. Tristar paid $230,000 in cash for the property. According to appraisals, the land had a fair value of $160,000 and the building had a fair value of $90,000. 2. On September 1, Tristar signed a $53.000 noninterest-bearing note to purchase equipment. The $53,000 payment is due on September 1, 2022. Assume that 8% is a reasonable Interest rate. 3. On September 15, a truck was donated to the corporation. Similar trucks were selling for $3,800. 4. On September 18, the company paid its lawyer $4,000 for organizing the corporation. 5. On October 10, Tristar purchased maintenance equipment for cash. The purchase price was $28,000 and $1,150 in freight charges also were paid. 6. On December 2, Tristar acquired various Items of office equipment. The company was short of cash and could not pay the $6,800 normal cash price. The supplier agreed to accept 200 shares of the company's no-par common stock in exchange for the equipment. The fair value of the stock is not readily determinable. 7. On December 10, the company acquired a tract of land at a cost of $33,000. It paid $4.000 down and signed a 10% note with both principal and Interest due in one year. Ten percent is an appropriate rate of Interest for this note. Required: Prepare journal entries to record each of the above transactions. (If no entry is required for a transaction/event, select "No Journal entry required" in the first account field. Round final answers to the nearest whole dollars.)
Tristar Production Company began operations on September 1, 2021. Listed below are a number of transactions that occurred during Its first four months of operations. (FV of $1. PV of $1. FVA of $1. PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1. On September 1, the company acquired five acres of land with a building that will be used as a warehouse. Tristar paid $230,000 in cash for the property. According to appraisals, the land had a fair value of $160,000 and the building had a fair value of $90,000. 2. On September 1, Tristar signed a $53.000 noninterest-bearing note to purchase equipment. The $53,000 payment is due on September 1, 2022. Assume that 8% is a reasonable Interest rate. 3. On September 15, a truck was donated to the corporation. Similar trucks were selling for $3,800. 4. On September 18, the company paid its lawyer $4,000 for organizing the corporation. 5. On October 10, Tristar purchased maintenance equipment for cash. The purchase price was $28,000 and $1,150 in freight charges also were paid. 6. On December 2, Tristar acquired various Items of office equipment. The company was short of cash and could not pay the $6,800 normal cash price. The supplier agreed to accept 200 shares of the company's no-par common stock in exchange for the equipment. The fair value of the stock is not readily determinable. 7. On December 10, the company acquired a tract of land at a cost of $33,000. It paid $4.000 down and signed a 10% note with both principal and Interest due in one year. Ten percent is an appropriate rate of Interest for this note. Required: Prepare journal entries to record each of the above transactions. (If no entry is required for a transaction/event, select "No Journal entry required" in the first account field. Round final answers to the nearest whole dollars.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Tristar Production Company began operations on September 1, 2021. Listed below are a number of transactions that occurred during
Its first four months of operations. (FV of $1. PV of $1. FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from
the tables provided.)
1. On September 1, the company acquired five acres of land with a building that will be used as a warehouse. Tristar paid $230,000 in
cash for the property. According to appraisals, the land had a fair value of $160,000 and the building had a fair value of $90,000.
2. On September 1, Tristar signed a $53,000 noninterest-bearing note to purchase equipment. The $53,000 payment is due on
September 1, 2022. Assume that 8% is a reasonable Interest rate.
3. On September 15, a truck was donated to the corporation. Similar trucks were selling for $3,800.
4. On September 18, the company paid its lawyer $4,000 for organizing the corporation.
5. On October 10, Tristar purchased maintenance equipment for cash. The purchase price was $28,000 and $1,150 In freight charges
also were paid.
6. On December 2, Tristar acquired various items of office equipment. The company was short of cash and could not pay the $6,800
normal cash price. The supplier agreed to accept 200 shares of the company's no-par common stock in exchange for the
equipment. The fair value of the stock is not readily determinable.
7. On December 10, the company acquired a tract of land at a cost of $33,000. It paid $4,000 down and signed a 10% note with both
principal and Interest due in one year. Ten percent is an appropriate rate of Interest for this note.
Required:
Prepare Journal entries to record each of the above transactions. (If no entry is required for a transaction/event, select "No journal
entry required" in the first account field. Round final answers to the nearest whole dollars.)
View transaction list
Journal entry worksheet
<
2
Dates
September 01
On September 1, the company acquired five acres of land with a building that
will be used as a warehouse. Tristar paid $230,000 in cash for the property.
According to appraisals, the land had a fair value of $160,000 and the building
had a fair value of $90,000.
Note: Enter debits before credits.
Record entry
General Journal
7
Clear entry
Debit
Credit
View general Journal
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