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 $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, truck was donated to the corporation. Similar 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 acquired a tract of land at a cost of $40,000. It paid $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.) Samtech Manufacturing purchased land and building for $6 million. In addition to the purchase price, Samtech made the following expenditures in connection with the purchase of the land and building: Title insurance Legal fees for drawing the contract Pro-rated property taxes for the period after acquisition State transfer fees $27,000 5,500 47,000 5,100 An independent appraisal estimated the fair values of the lanarand building, if purchased separately, at $3.9 and $2.6 million, respectively. Shortly after acquisition, Samtech spent $93,000 to construct a parking lot and $51,000 for landscaping. Required: 1. Determine the initial valuation of each asset Samtech acquired in these transactions. 2. Determine the initial valuation of each asset, assuming that immediately after acquisition, Samtech demolished the building. Demolition costs were $360,000 and the salvaged materials were sold for $6,500. In addition, Samtech spent $90,000 clearing and grading the land in preparation for the construction of a new building. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the initial valuation of each asset, assuming that immediately after acquisition, Samtech demolished the building. Demolition costs were $360,000 and the salvaged materials were sold for $6,500. In addition, Samtech spent $90,000 clearing and grading the land in preparation for the construction of a new building. (Enter your answers in whole dollars.) Assets Initial Valuation Land Building Land improvements
