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. (EV of $1. PV of $1. EVA of $1 PVA of $1. EVAD 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 $300,000 in cash for the property. According to appraisals, the land had a fair value of $195,200 and the building had a fair value of $124,800. 2. On September 1, Tristar signed a $60,000 noninterest-bearing note to purchase equipment. The $60,000 payment is due on September 1, 2022. Assume that 9% is a reasonable interest rate. 3. On September 15, a truck was donated to the corporation. Simlar trucks were selling for $4,500. 4. On September 18, the company paid its lawyer $7,500 for organizing the corporation. 5. On October 10. Tristar purchased maintenance equipment for cash. The purchase price was $35,000 and $1,500 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 $7,500 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 acqulred a tract of land at a cost of $40.000. It pald S$7,500 down and signed a 11% note with both principal and interest due in one year. Eleven 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. (EV of $1. PV of $1. EVA of $1 PVA of $1. EVAD 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 $300,000 in cash for the property. According to appraisals, the land had a fair value of $195,200 and the building had a fair value of $124,800. 2. On September 1, Tristar signed a $60,000 noninterest-bearing note to purchase equipment. The $60,000 payment is due on September 1, 2022. Assume that 9% is a reasonable interest rate. 3. On September 15, a truck was donated to the corporation. Simlar trucks were selling for $4,500. 4. On September 18, the company paid its lawyer $7,500 for organizing the corporation. 5. On October 10. Tristar purchased maintenance equipment for cash. The purchase price was $35,000 and $1,500 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 $7,500 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 acqulred a tract of land at a cost of $40.000. It pald S$7,500 down and signed a 11% note with both principal and interest due in one year. Eleven 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 operatlons on September 1, 2021. Listed below are a number of transactions that occurred during
its first four months of operations. (EV of $1. PV of $1. EVA of $1. PVA of $1. EVAD 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 $300,000 in
cash for the property. According to appraisals, the land had a fair value of $195,200 and the building had a fair value of $124,800.
2. On September 1, Tristar signed a $60,000 noninterest-bearing note to purchase equipment. The $60,000 payment is due on
September 1, 2022. Assume that 9% is a reasonable interest rate.
3. On September 15, a truck was donated to the corporation. Slmllar trucks were sellng for $4,500.
4. On September 18, the company paid its lawyer $7,500 for organizing the corporation.
5. On October 10, Tristar purchased maintenance equipment for cash. The purchase price was $35,000 and $1,500 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 $7,500
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 acqulred a tract of land at a cost of $40.000. It pald $7,500 down and signed a 11% note with both
principal and interest due in one year. Eleven 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.)
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