Transaction Analysis and Journal Entries}

Pasta House Inc. was organized in January 2018. During the year, the following transactions occurred:

a. On January 14, Pasta House sold Martin Halter, the firm's founder and sole owner, 10,000 of its common shares for \(\$ 8\) per share.

b. On the same day, National Bank loaned Pasta House \(\$ 45,000\) on a 10 -year note payable.

c. On February 22, Pasta House purchased a building and the land on which it stands from Frank Jakubek for \(\$ 34,000\) cash and a 5 -year, \(\$ 56,000\) note payable. The land and building had appraised values of \(\$ 30,000\) and \(\$ 60,000\), respectively.

d. On March 1, Pasta House signed a \(\$ 15,000\) contract with Crosby Renovations to remodel the inside of the building. Pasta House paid \(\$ 4,000\) down and agreed to pay the remainder when Crosby completed its work.

e. On May 3, Crosby completed its work and submitted a bill to Pasta House for the remaining \(\$ 11,000\).

f. On May 20, Pasta House paid \(\$ 11,000\) to Crosby Renovations.

g. On June 4, Pasta House purchased restaurant supplies from Goa Supply for \(\$ 650\) cash.

\section*{Required:}
Prepare a journal entry for each of these transactions.
\section*{Exercise