Tristar Production Company began operations on September 1, 2021. Listed below are a number of transactions...

Transcribed Image Text:

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 $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 12% 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.) No 1 Dates September 01 Land Building Cash 2 September 01 Equipment Answer is not complete. General Journal Discount on notes payable Notes payable Revenue-donation of asset Truck 3 September 15 000 Debit Credit 000 00 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 $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 12% 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.) No 1 Dates September 01 Land Building Cash 2 September 01 Equipment Answer is not complete. General Journal Discount on notes payable Notes payable Revenue-donation of asset Truck 3 September 15 000 Debit Credit 000 00