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

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage 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.) 1. On September 1, the company acquired five acres of land with a building that will be used as a warehouse. Tristar paid $290,000 in cash for the property. According to appraisals, the land had a fair value of $204,600 and the building had a fair value of $105,400. 2. On September 1, Tristar signed a $59,000 noninterest-bearing note to purchase equipment. The $59,000 payment is due on September 1, 2022. Assume that 8% Is a reasonable Interest rate. 3. On September 15, a truck was donated to the corporation. Similar trucks were selling for $4,400. 4. On September 18, the company paid its lawyer $7,000 for organizing the corporation. 5. On October 10, Tristar purchased maintenance equipment for cash. The purchase price was $34,000 and $1,450 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 $7,400 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 $39,000. It paid $7,000 down and signed a 10% note with both principal and interest due in one year. Ten 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.)

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

Cornerstones of Managerial Accounting

Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

6th edition

1305103963, 978-1305548909, 1305548906, 978-1305103962

More Books

Students also viewed these Accounting questions

Question

Why did our vacant position attract your attention?

Answered: 1 week ago