Transaction Analysis and Journal Entries Pasta House Inc. was organized in January 2022.

During the year, the following transactions occurred:

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

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.

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.

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

On May 20, Pasta House paid $11,000 to Crosby Renovations.

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