Question

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.) points Skipped 1. On September 1, the company acquired five acres of land with a building that will be used as a warehouse. Tristar paid $220.000 in cash for the property. According to appraisals, the land had a fair value of $151,200 and the building had a fair value of $88,800. 2. On September 1, Tristar signed a $52.000 noninterest-bearing note to purchase equipment. The $52.000 payment is due on September 1.2022. Assume that 10% is a reasonable Interest rate. 3. On September 15, a truck was donated to the corporation. Similar trucks were selling for $3,700. 4. On September 18, the company paid its lawyer $3.500 for organizing the corporation 5. On October 10, Tristar purchased maintenance equipment for cash. The purchase price was $27.000 and $1,100 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 $6,700 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 $32.000. It paid $3,500 down and signed a 129 note with both principal and Interest due in one year. Twelve 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 llat Journal entry worksheet 2 3 4 5 6 7 On September 1, the company acquired five acres of land with a building that will be used as a warehouse. Tristar paid $220,000 in cash for the property. According to appraisals, the land had a fair value of 5151,200 and the building had a fair value of 588,800. Note: Enter debits before credits. Dates General Journal Debit Debit Credit C September 01 Record entry Clear entry View general Journal

Answer 1

Tristar Production Company Journal Enteries Trans. Particulars 1 Land a/c Building a/c To Cash Dr. Debit in $ Credit in $ 138600 81400 220000 Dr. Asset Land Building Fair Value 151200 88800 240000 Percent of Total Initial Fair Value Valuation 63% 138600 37% 81400 100% 220000 2 47273 4727 Equipment a/c Dr. Discount on note payable a/c Dr. To Note payable PV(FV = 52,000, PMT=0, n=1, 1 = 10) = 47,273 52000 Dr. 3700 Truck a/c To Revenue - donation of asset 3700 4 Dr. 3500 Organization cost expense a/c To Cash 3500 5 Dr. 27000 Machinery a/c To Cash 27000 6 Dr. 6700 Office equipment a/c To Common stock 6700 7 Dr. 32000 Land a/c To Cash To Note payable 3500 28500