Question

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.) On September 1, the company acquired five acres of land with a building that will be used as a warehouse. Tristar paid $110,000 in cash for the property. According to appraisals, the land had a fair value of $78,000 and the building had a fair value of $52,000. On September 1, Tristar signed a $41,000 noninterest-bearing note to purchase equipment. The $41,000 payment is due on September 1, 2022. Assume that 8% is a reasonable interest rate. On September 15, a truck was donated to the corporation. Similar trucks were selling for $2,600. On September 18, the company paid its lawyer $3,500 for organizing the corporation. On October 10, Tristar purchased maintenance equipment for cash. The purchase price was $16,000 and $550 in freight charges also were paid. On December 2, Tristar acquired various items of office equipment. The company was short of cash and could not pay the $5,600 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 $21,000. It paid $2,500 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.)

Answer 1

Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you.
Date	Account	Debit	Credit
Sep 1	Land ($78,000/$130,000*$110,000)	$   66,000
	Building ($52,000/$130,000*$110,000)	$   44,000
	Cash		$   110,000
	(To record the acquisition of land and building)
Sep 1	Equipment ($41,000*0.92593)	$   37,963
	Discount on Note Payable (Plug in)	$     3,037
	Note Payable		$     41,000
	*PV of $1, n=1,i=8%
	(To record the acquisition of equipment for cash and a note)
Sep 15	Truck	$     2,600
	Revenue-Donation of Asset		$        2,600
	(To record the acquisition of a truck by donation)
Sep 18	Organization Expense	$     3,500
	Cash		$        3,500
	(To capitalize organization costs)
Oct 10	Maintenance Equipment ($16,000+$550)	$   16,550
	Cash		$     16,550
	(To record the purchase of equipment)
Dec 2	Office Equipment	$     5,600
	Common Stock		$        5,600
	(To record the acquisition of office equipment by the issuance of common Stock)
Dec 10	Land	$   21,000
	Cash		$        2,500
	Note Payable		$     18,500
	(To record the acquisition of land in exchange for cash and a note)