Tristar Production Company began operations on September 1,2013. Listed below are a number of transactions that occurredduring 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 appropriatefactor(s) from the tables provided.) 1. On September 1, the companyacquired five acres of land with a building that will be used as awarehouse. Tristar paid $150,000 in cash for the property.According to appraisals, the land had a fair value of $108,800 andthe building had a fair value of $61,200. 2. On September 1,Tristar signed a $45,000 noninterest-bearing note to purchaseequipment. The $45,000 payment is due on September 1, 2014. Assumethat 9% is a reasonable interest rate. 3. On September 15, a truckwas donated to the corporation. Similar trucks were selling for$3,000. 4. On September 18, the company paid its lawyer $5,500 fororganizing the corporation. 5. On October 10, Tristar purchasedmachinery for cash. The purchase price was $20,000 and $750 infreight charges also were paid. 6. On December 2, Tristar acquiredvarious items of office equipment. The company was short of cashand could not pay the $6,000 normal cash price. The supplier agreedto accept 200 shares of the company’s nopar common stock inexchange for the equipment. The fair value of the stock is notreadily determinable. 7. On December 10, the company acquired atract of land at a cost of $25,000. It paid $4,500 down and signeda 11% note with both principal and interest due in one year. Elevenpercent 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, select “No journalentry required” in the first account field.)

 



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