Question

Tristor Production Company began operations on September 1, 2018. Listed below are e number of transections that occurred during its first four months of operations. (FV of $1. PV of S1. EVA of SE PVA of $1. EVAD oE St and PVAD of S (Use appropriste factor(s) from the tables provided.) 1. On September 1, the company acquired five acres of lond with a building that will be used as a warehouse Tristar paid $180,000 in cash for the property According to appraisals, the land hadie fair value of $134,000 and the building had a fair value of S66.000. 2. On September 1 Tristar signed a S48.000 noninterest-bearing note to purchase equipment The $48,000 payment is due on September 1, 2019 Assume that 9% is e reasonable interest rate 3. On September 15, a truck wos donated to the corporation. Similar trucks were selling for $3.30 4 On September 18 the company paid its lawyer S7,000 for organizing the corporation. 5. On October 10. Tristar purchased maintenance equipment for cash The purchase price was $23,000 and $900 in freight charges also were poid. 6. On December 2. Tristar acquired various items of office equipment. The company wos short of cash and could not pay the $6.300 normal cash price. The supplier agreed to accept 200 sheres of the company's nopar.comman 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 ot a cost of $28,000. it paid $6,000 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 obove transactions select No journal entry required" in the first account field. Round final answers to the nearest whole dollars.) no entry is required for a transaction/event. View transaction list Journal entry worksheet 7. On September 1, the company acquired five acres of land with a building that will be used as a warehouse. Tristar paid $180,000 in cash for the propertv According to appraisals, the land had a fair value of $134,000 and the building had a fair value of S56,000. Nata: Enter dehits belere-credits- Debi Ciedil General Joumal Transaction View general joumal Clear entry Record entry

Answer 1

CR 1 Particulars Land Building Cash DR $ 1,20,600.00 $ 59,400.00 $ 1,80,000.00 Asset Land Fair value $ 1,34,000.00 $ 66,000.00 $ 2,00,000.00 Percent of Initial valuation total fair value (percent*180000) 67.00% $ 1,20,600.00 33.00% $ 59,400.00 $ 1,80,000.00 Building CR 2 Particulars Equipment Discount on note payable Note payable $ $ 44,016.00 3,984.00 $ 48,000.00 PV=48000*0.917 = 44016 3 Particulars Truck Revenue-Donation of asset DR $ 3,300.00 $ 3,300.00 4 Particulars Organization cost expense Cash DR $ 7,000.00 7,000.00 5 Particulars Machinery Cash DR $ 23,900.00 $ 23,900.00 6 Particulars Office equipment Common stock DR $ 6,300.00 $ 6,300.00 DR CR $ 28,000.00 Particulars Land Cash Note payable $ $ 6,000.00 22,000.00