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Transaction Analysis and Journal Entries Pasta House Inc. was organized in January. During the year, the transactions below occurred: a. On January 14, Pasta


 

Transaction Analysis and Journal Entries Pasta House Inc. was organized in January. During the year, the transactions below occurred: a. On January 14, Pasta House sold Martin Halter, the firm's founder and sole owner, 9,100 shares of its common stock for $9 per share. b. On the same day, Bank One loaned Pasta House $38,000 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 an $15,000 contract with Cosby Renovations to remodel the inside of the building. Pasta House paid $5,000 down and agreed to pay the remainder when Cosby completed its work. e. On May 3, Cosby completed its work and submitted a bill to Pasta House for the remaining $10,000. f. On May 20, Pasta House paid $10,000 to Cosby Renovations. g. On June 4, Pasta House purchased restaurant supplies from Glidden Supply for $650 cash. Required: Prepare a journal entry for each of the above transactions. If an amount box does not require an entry, leave it blank. Jan. 14 14 Feb. 22

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