Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

image text in transcribed

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.) :12 1. On September 1, the company acquired five acres of land with a building that will be used as a warehouse. Tristar paid $160,000 in cash for the property. According to appraisals, the land had a fair value of $117,000 and the building had a fair value of $63,000. 2. On September 1, Tristar signed a $46,000 noninterest-bearing note to purchase equipment. The $46,000 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 $3,100. 4. On September 18, the company paid its lawyer $6,000 for organizing the corporation 5. On October 10, Tristar purchased maintenance equipment for cash. The purchase price was $21,000 and $800 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 $6,100 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 $26,000. It paid $5,000 down and signed a 12% note with both principal and interest due in one year. Twelve percent is an appropriate rate of interest for this note. es 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 list

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Internal Audit Handbook The Business Approach To Driving Audit Value

Authors: Hans Beumer

1st Edition

3906861201, 978-3906861203

More Books

Students also viewed these Accounting questions