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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.
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 S1. PV of $1, FVA of S1 PVA of $1, FVAD of $i and PVAD of $1 (Use appropriate factor(s) from the tables provided.) 1 On September 1, the company acquired five scres of land with a bulling that will be used as a warehouse. Tristar paid $160,000 in cash for the property. According to sporsissis, 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 $45,000 noninterest-bearing note to purchase equipment. The $16,000 payment is due on September 1, 2022. Assume that 10% 15 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 perdits Iswyer $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 pold 6. On December 2. Tristar scquired 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 nogar common stock in exchange for the equipment. The fair value of the stock is not really determinable. 7. On December 10, the company scquired a trsct 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. Required: Prepare journal entries to record esch of the above transactions. If no entry is required for a transaction levent select "No Journal entry required in the first account field. Round final answers to the nearest whole dollars.) Answer is not complete. General Journal No Datec Debit Credit 1 September 01 Land 104.000 56.000 Bilding Cash 160.000 2 September 01 Equipment 41.818 4182 Discount on notes payable Notes payable 45.000 3 September 15 Truck 3.100 Revenue-donation of asset 3.100 4 September 18 Organization cost expense OOO OO OO OO OO OOO OOO 6.000 6.000 5 October 10 Equipment 21.900 21.900 6 December 02 6.100 Equipment Common stock 6.100 7 December 10 Land Cash Notes payable 26.000 5.000 31.000K
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