Tristar Production Company began operations on September 1, 2024. Listed below are a number of transactions that occurred during its first four months of operations. 1. On September 1, the company acquired five acres of land with a building that will be used as a warehouse. Tristar paid $170,000 in cash for the property. According to appraisals, the land had a fair value of $125,400 and the building had a fair value of $64,600. 2. On September 1, Tristar signed a $47,000 noninterest-bearing note to purchase equipment. The $47,000 payment is due on September 1, 2025. Assume that 8% is a reasonable interest rate. 3. On September 15, a truck was donated to the corporation. Similar trucks were selling for $3,200. 4. On September 18, the company paid its lawyer $6,500 for organizing the corporation. 5. On October 10, Tristar purchased equipment for cash. The purchase price was $22,000 and $850 in freight charges also were paid. 6. On December 2, Tristar acquired equipment. The company was short of cash and could not pay the $6,200 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 $27,000. It paid $5,500 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. Note: Use tables, Excel, or a financial calculator. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar. (FV of $1, PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) View transaction list Journal entry worksheet 2 3 < 1 On September 1, the company acquired five acres of land with a building that will be used as a warehouse. Tristar paid $170,000 in cash for the property. According to appraisals, the land had a fair value of $125,400 and the building had a fair value of $64,600. Note: Enter debits before credits. Date September 01 4 5 6 7 Record entry General Journal Clear entry Debit Credit View general journal

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
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Chapter1: Financial Statements And Business Decisions
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Tristar Production Company began operations on September 1, 2024. Listed below are a number of transactions that occurred during
its first four months of operations.
1. On September 1, the company acquired five acres of land with a building that will be used as a warehouse. Tristar paid $170,000
in cash for the property. According to appraisals, the land had a fair value of $125,400 and the building had a fair value of
$64,600.
2. On September 1, Tristar signed a $47,000 noninterest-bearing note to purchase equipment. The $47,000 payment is due on
September 1, 2025. Assume that 8% is a reasonable interest rate.
3. On September 15, a truck was donated to the corporation. Similar trucks were selling for $3,200.
4. On September 18, the company paid its lawyer $6,500 for organizing the corporation.
5. On October 10, Tristar purchased equipment for cash. The purchase price was $22,000 and $850 in freight charges also were
paid.
6. On December 2, Tristar acquired equipment. The company was short of cash and could not pay the $6,200 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 $27,000. It paid $5,500 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.
Note: Use tables, Excel, or a financial calculator. If no entry is required for a transaction/event, select "No journal entry required" in
the first account field. Round your answers to the nearest whole dollar. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and
PVAD of $1)
View transaction list
Journal entry worksheet
<
1
Date
September 01
2
Record entry
3
4
5
On September 1, the company acquired five acres of land with a building that
will be used as a warehouse. Tristar paid $170,000 in cash for the property.
According to appraisals, the land had a fair value of $125,400 and the building
had a fair value of $64,600.
Note: Enter debits before credits.
6
General Journal
Clear entry
7
Debit
Credit
View general journal
< Prev.
2 of 5
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www
Next >
Transcribed Image Text:Tristar Production Company began operations on September 1, 2024. Listed below are a number of transactions that occurred during its first four months of operations. 1. On September 1, the company acquired five acres of land with a building that will be used as a warehouse. Tristar paid $170,000 in cash for the property. According to appraisals, the land had a fair value of $125,400 and the building had a fair value of $64,600. 2. On September 1, Tristar signed a $47,000 noninterest-bearing note to purchase equipment. The $47,000 payment is due on September 1, 2025. Assume that 8% is a reasonable interest rate. 3. On September 15, a truck was donated to the corporation. Similar trucks were selling for $3,200. 4. On September 18, the company paid its lawyer $6,500 for organizing the corporation. 5. On October 10, Tristar purchased equipment for cash. The purchase price was $22,000 and $850 in freight charges also were paid. 6. On December 2, Tristar acquired equipment. The company was short of cash and could not pay the $6,200 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 $27,000. It paid $5,500 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. Note: Use tables, Excel, or a financial calculator. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) View transaction list Journal entry worksheet < 1 Date September 01 2 Record entry 3 4 5 On September 1, the company acquired five acres of land with a building that will be used as a warehouse. Tristar paid $170,000 in cash for the property. According to appraisals, the land had a fair value of $125,400 and the building had a fair value of $64,600. Note: Enter debits before credits. 6 General Journal Clear entry 7 Debit Credit View general journal < Prev. 2 of 5 www www Next >
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