WK 10 & 11 Homework Help Save & Exit Submi Saved Check my work 5 Tristar Product
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WK 10 & 11 Homework Help Save & Exit Submi Saved Check my work 5 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.(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.) 20 polnts 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 eBook 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. On September 18, the company paid its lawyer $3,000 for organizing the corporation. 5. On October 10, Tristar purchased maintenance equipment for cash. The purchase price was $15,000 and $500 in freight charges Print 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 $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 References 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 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.) View transaction list Journal entry worksheet 2 4 6 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 Note: Enter debits before credits Transaction General Journal Debit Credit Mc Graw Prev 5 of 7 Next >Explanation / Answer
1
On september 1 the company acquired five acres of land with the building that will be used as warehouse. Tristar paid $100,000 in cash for the property.
Transaction
General journal
Debit
credit
1
Land
62500
Building
37500
cash
100000
*$100,000*(75000/120000)
$100,000*(375000/120000)
2
On september 1 , tirstar signed a $40,000 non interst bearing note to purchase equipment. The payment is due on septerm 1 2019
Transaction
General journal
Debit
credit
2
Equipment
37037
Discount on notes payable
$2,963
Notes Payable
$40,000
3
On september 15, a truck was donated to the corporation. Similar trucks selling for $2500
Transaction
General journal
Debit
credit
3
Truck
$2,500
Revenue - donation
$2,500
4
On september 18, the company paid its lawyer $3000 for organizing the corporation
Transaction
General journal
Debit
credit
4
Organization cost expense
$3,000
cash
$3,000
5
on october 10 tirstar purchased equipment for cash
Transaction
General journal
Debit
credit
5
Equipment
15500
cash
15500
6
On december 2, tristar various items of office equipment.
Transaction
General journal
Debit
credit
6
Equipment
$5,500
common stock
$5,500
7
On december 10, the company acquried a tract of land at cost $20000
Transaction
General journal
Debit
credit
7
Land
$20,000
cash
$2,000
Notes Payable
$18,000
1
On september 1 the company acquired five acres of land with the building that will be used as warehouse. Tristar paid $100,000 in cash for the property.
Transaction
General journal
Debit
credit
1
Land
62500
Building
37500
cash
100000
*$100,000*(75000/120000)
$100,000*(375000/120000)
2
On september 1 , tirstar signed a $40,000 non interst bearing note to purchase equipment. The payment is due on septerm 1 2019
Transaction
General journal
Debit
credit
2
Equipment
37037
Discount on notes payable
$2,963
Notes Payable
$40,000
3
On september 15, a truck was donated to the corporation. Similar trucks selling for $2500
Transaction
General journal
Debit
credit
3
Truck
$2,500
Revenue - donation
$2,500
4
On september 18, the company paid its lawyer $3000 for organizing the corporation
Transaction
General journal
Debit
credit
4
Organization cost expense
$3,000
cash
$3,000
5
on october 10 tirstar purchased equipment for cash
Transaction
General journal
Debit
credit
5
Equipment
15500
cash
15500
6
On december 2, tristar various items of office equipment.
Transaction
General journal
Debit
credit
6
Equipment
$5,500
common stock
$5,500
7
On december 10, the company acquried a tract of land at cost $20000
Transaction
General journal
Debit
credit
7
Land
$20,000
cash
$2,000
Notes Payable
$18,000
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