Problem $10-1($Algo$)$ Acquisition costs $[$LO$10-1,10-2,10-3,10-4]$

Tristar Production Company began operations on September $1,2024.$ Listed below are a number of transactions that occurred during its first four months of operations.

On September $1,$ the company acquired five acres of land with a building that will be used as a warehouse. Tristar paid $$300,000$ in cash for the property. According to appraisals, the land had a fair value of $$195,200$ and the building had a fair value of $$124,800.$

On September $1,$ Tristar signed a $$60,000$ noninterest$-$bearing note to purchase equipment. The $$60,000$ payment is due on September $1,2025.$ Assume that $9\%$ is a reasonable interest rate.

On September $15,$ a truck was donated to the corporation. Similar trucks were selling for $$4,500.$

On September $18,$ the company paid its lawyer $$7,500$ for organizing the corporation.

On October $10,$ Tristar purchased equipment for cash. The purchase price was $$35,000$ and $$1,500$ in freight charges also were paid.

On December $2,$ Tristar acquired equipment. The company was short of cash and could not pay the $$7,500$ 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 $$40,000.$ It paid $$7,500$ down and signed a $11\%$ note with both principal and interest due in one year. Eleven percent is an appropriate rate of interest for this note.

Required:

Prepare journal entries to record each of the above transactions.