ROGER CPA Review Chapter 10 Problems 1, 9, 10 Saved to this PC rences Mailings Review View Help Tell me what you want to do AaBbCcD AaBbCcDc AaBbC AaBbC !:-.e.ii, ThormallTNoSpac Heading 1 Heading Paragraph Styles P 10-1 Acquisition costs LO10-1 through LO10-4 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. 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,oo0 and the building had a fair value of $45,000 On September 1, Tristar signed a $40,000 noninterest-bearing note to purchase equipment. The $40,000 payment is due on September i, 2019. Assume that 8% is a reasonable interest rate. 1. 2. 3. On September 15, a truck was donated to the corporation. Similar trucks were selling 4. Page 564 On September 18, the company paid its lawyer $3.ooo for organizing the 5 On October 1o, Tristar purchased maintenance equipment for cash. The purchase 6. On December 2, Tristar acquired various items of office equipment. The company for $2,50o. corporation. price was $15,oo0 and Ssoo in freight charges also were paid. 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 ponat common stoek in exchange for the equipment. The fair value of the stock is not readily determinable. On December so, 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. 7. Prepare journal entries to record each of the above transactions