Reference no: EM131202161
Tristar Production Company began operations on September 1, 2013. 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.)
1. On September 1, the company acquired five acres of land with a building that will be used as a warehouse. Tristar paid $290,000 in cash for the property. According to appraisals, the land had a fair value of $204,600 and the building had a fair value of $105,400.
2. On September 1, Tristar signed a $59,000 noninterest-bearing note to purchase equipment. The $59,000 payment is due on September 1, 2014. Assume that 8% is a reasonable interest rate.
3. On September 15, a truck was donated to the corporation. Similar trucks were selling for $4,400.
4. On September 18, the company paid its lawyer $7,000 for organizing the corporation.
5. On October 10, Tristar purchased machinery for cash. The purchase price was $34,000 and $1,450 in freight charges 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 $7,400 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 $39,000. It paid $7,000 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
|
The auditors find serious weaknesses in the internal control
: Assume that the auditors find serious weaknesses in the internal control of Oak Canyon, Inc., a producer and distributor of fine wines. Would these internal control weaknesses cause the auditors to rely more or less upon each of the following type of..
|
|
Discuss harmony right of garnishment against nettie
: Harmony obtained a judgment against John and his company. At the time of the judgment, John lacked sufficient funds to pay. Just before Harmony obtained the judgment, John had transferred $126,000 to his mother, Nettie, who had signed a promissory n..
|
|
Developed schedule of future taxable and deductible amounts
: Nadal Inc. has two temporary differences at the end of 2006. The first difference stems from installment sales, and the second one results from the accrual of a loss contingency. Nadal's accounting department has developed a schedule of future taxabl..
|
|
Prepare journal entries to record each of the transactions
: Tristar Production Company began operations on September 1, 2013. Listed below are a number of transactions that occurred during its first four months of operations. On September 15, a truck was donated to the corporation. Similar trucks were selling..
|
|
Calculate contribution margin and operating income
: Patel Manufacturing sold 200,000 units of its product for $30 per unit in 2008. Variable cost per unit is $25 and total fixed costs are 800,000. Calculate (a) contribution margin and (b) operating income.
|
|
Measures from the internal process perspective
: Which of the following measures from the internal process perspective would most likely be a driver of customer retention in the customer perspective of a retails store balanced scorecard
|
|
Record the journal entries for the issuance of the bonds
: On July 1, 2016 Alpha Company sells $1,000,000 face value of 10% five year bonds which call for semiannual interest payments. The bonds are dated April 1, 2016 so these bonds are issued between interest dates. The market rate at the date of issue is ..
|
|
Use your tax accounting knowledge
: If you could answer this tax accounting question perfectly that will be awesome. Please read the whole document carefully and use your tax accounting knowledge to answer it. Eta Corporation approaches Lily White, the CEO and sole shareholder of MuCo,..
|