Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Vims/dropbox/user/folder submit files.d21?db-60214028grpid-08tisprv-08bp-08kou-7653198 Preparing Journal Entries Helpful References from your text: P 10-1 Acquisition costs . LO10-1 through LO10-4 Scenario Tristar Production Company began operations

image text in transcribed
image text in transcribed
Vims/dropbox/user/folder submit files.d21?db-60214028grpid-08tisprv-08bp-08kou-7653198 Preparing Journal Entries Helpful References from your text: P 10-1 Acquisition costs . LO10-1 through LO10-4 Scenario Tristar Production Company began operations on September 1, 2018. Listed below are a number of transactions that occurred during its first four months of operations. 1. On September 1, the company acquired five acres of land with a building that will be used as a warehouse. Tristar paid $100,000 in cash for the property. According to appraisals, the land had a fair value of $75,000 and the building had a fair value of $45,000. 2. On September 1, Tristar signed a $40,000 noninterest-bearing note to purchase equipment. The $40,000 payment is due on September 1, 2019. Assume that 8% is a reasonable interest rate. 3. On September 15, a truck was donated to the corporation. Similar trucks were selling for $2.500 4. page 5640n September 18, the company paid its lawyer $3,000 for organizing the corporation. Submit Cancel Ims/dropbox/user/folder submit files.d21?db- 60214028grpid-08tisprv-0&bp-0ou 7653198 ptemper I, Tristar signea a $40,0 purchase equipment. The $40,000 payment is due on September 1, 2019. Assume that 8% is a reasonable interest rate. 3. On September 15, a truck was donated to the corporation. Similar trucks were 4. page 564On September 18, the company paid its lawyer $3,000 for organizing 5. On October 10, Tristar purchased maintenance equipment for cash. The 6. On December 2, Tristar acquired various items of office equipment. The selling for $2,500. the corporation. purchase price was $15,000 and $500 in freight charges also were paid. company was short of cash and could not pay the $5,500 normal cash price. The supplier agreed to accept 200 shares of the company's nopar 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 $20,000. It paid $2,000 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. Assignment Prepare journal entries to record each of the above transactions. Submit Please put yoor first and last name at the top of the document followed by the date. Save the document with your first initial and last name followed by Db10. (e.g. john Submit

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

Financial Accounting Self Study Problems/Solutions Book

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel

4th Edition

0471205133, 978-0471205135

More Books

Students also viewed these Accounting questions

Question

5. List the forces that shape a groups decisions

Answered: 1 week ago

Question

4. Identify how culture affects appropriate leadership behavior

Answered: 1 week ago