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  • Tristar Production Company Began Operations On September

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    Kailash Kumar
    321 views2 pages
    The document shows the initial recording of various asset acquisitions for a company, including land, buildings, equipment, trucks, and machinery. It provides the fair values, percentages of total fair value, and journal entries to record the assets and how they were financed using cash, notes payable, common stock, or revenue from donations. Values and percentages for some assets were updated in a second set of journal entries showing a similar format to the initial recording of asset acquisitions and financing.

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    Tristar Production Company Began Operations on September

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    The document shows the initial recording of various asset acquisitions for a company, including land, buildings, equipment, trucks, and machinery. It provides the fair values, percentages of total fair value, and journal entries to record the assets and how they were financed using cash, notes payable, common stock, or revenue from donations. Values and percentages for some assets were updated in a second set of journal entries showing a similar format to the initial recording of asset acquisitions and financing.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    321 views2 pages

    Tristar Production Company Began Operations On September

    Uploaded by

    Kailash Kumar
    The document shows the initial recording of various asset acquisitions for a company, including land, buildings, equipment, trucks, and machinery. It provides the fair values, percentages of total fair value, and journal entries to record the assets and how they were financed using cash, notes payable, common stock, or revenue from donations. Values and percentages for some assets were updated in a second set of journal entries showing a similar format to the initial recording of asset acquisitions and financing.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    of 2

    Ques 1

    Percent of total Initial


    Asset Fair Value fair value Valuation
    Land 100000 63% 87500
    Building 60000 38% 52500
    160000 140000

    Journal
    Land 87500
    Building 52500
    Cash 140000

    Ques 2

    Equipment 40741 PV(i=8%,n=1,pmt=0,FV=44000)


    Discount on note payable 3259
    Note payable 44000
    ( I have rounded off this amount you can also take 40740 and make
    changes accordingly)

    Ques 3
    Truck 2900
    Revenue-donation of asset 2900

    Ques 4
    Organization cost expense 5000
    cash 5000

    Ques 5
    Machinery (19000+700) 19700
    cash 19700

    Ques 6
    Office equiment 5900
    common stock(200*$29.50) 5900

    Ques 7
    Land 24000
    Cash 4000
    Notes payable 20000
    Ques 1

    Percent of total Initial


    Asset Fair Value fair value Valuation
    Land 195000 65% 182000
    Building 105000 35% 98000
    300000 280000

    Journal
    Land 182000
    Building 98000
    Cash 280000

    Ques 2

    Equipment 52727 PV(i=10%,n=1,pmt=0,FV=58000)


    Discount on note payable 5273
    Note payable 58000

    Ques 3
    Truck 4300
    Revenue-donation of asset 4300

    Ques 4
    Organization cost expense 6500
    cash 6500

    Ques 5
    Machinery (33000+1400) 34400
    cash 34400

    Ques 6
    Office equiment 7300
    common stock(200*$36.50) 7300

    Ques 7
    Land 38000
    Cash 6500
    Notes payable 31500

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