Tristar Production Company began operations on September 1, 2024 Listed below are a number of transactions that occurred during its first four months of operations 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 On September 1, Tristar signed a $60,000 noninterest bearing note to purchase equipment The $60,000 payment is due on September 1, 2025 Assume that 9 is a reasonable interest rate On September 15, a truck was donated to the corporation Similar trucks were selling for $4,500 On September 18, the company paid its lawyer $7,500 for organizing the corporation On October 10, Tristar purchased equipment for cash The purchase price was $35,000 and $1,500 in freight charges also were paid On December 2, Tristar acquired 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 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 Prepare journal entries to record each of the above transactions Note Use tables, Excel, or a financial calculator If no entry is required for a transaction event, select No journal entry required in the first account field Round your answers to the nearest whole dollar (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)

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Posted on Sep 10, 2024

Tristar Production Company began operations on September 1, 2024. Listed below are a number of transactions that occurred during its first four months of operations.

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.
On September 1, Tristar signed a $60,000 noninterest-bearing note to purchase equipment. The $60,000 payment is due on September 1, 2025. Assume that 9% is a reasonable interest rate.
On September 15, a truck was donated to the corporation. Similar trucks were selling for $4,500.
On September 18, the company paid its lawyer $7,500 for organizing the corporation.
On October 10, Tristar purchased equipment for cash. The purchase price was $35,000 and $1,500 in freight charges also were paid.
On December 2, Tristar acquired 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.
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.

Prepare journal entries to record each of the above transactions.

Note: Use tables, Excel, or a financial calculator. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)