Exercise 2-53 (Algorithmic)Transaction Analysis and Journal EntriesPasta 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, 15,000 of its common shares for $9 per share.On the same day, National Bank loaned Pasta House $51,500 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 an $31,500 contract with Crosby Renovations to remodel the inside of the building. Pasta House paid $6,000 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 $25,500.On May 20, Pasta House paid $25,500 to Crosby Renovations.On June 4, Pasta House purchased restaurant supplies from Goa Supply for $650 cash.

Journal Entry: A journal is a book in which all of a company's transactions are…

Answered: Exercise 2-53 (Algorithmic) Transaction…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

100%

Exercise 2-53 (Algorithmic)
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, 15,000 of its common shares for $9 per share.
On the same day, National Bank loaned Pasta House $51,500 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 an $31,500 contract with Crosby Renovations to remodel the inside of the building. Pasta House paid $6,000 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 $25,500.
On May 20, Pasta House paid $25,500 to Crosby Renovations.
On June 4, Pasta House purchased restaurant supplies from Goa Supply for $650 cash.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions