Pasta House Inc. was organized in January 2019. During the year, the transactions belowoccurred:a. On January 14, Pasta House sold Martin Halter, the firm’s founder and sole owner, 10,000shares of its common stock for $8 per share.b. On the same day, Bank One 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 fromFrank Jakubek for $34,000 cash and a 5-year, $56,000 note payable. The land and buildinghad appraised values of $30,000 and $60,000, respectively.d. On March 1, Pasta House signed an $15,000 contract with Cosby Renovations to remodelthe inside of the building. Pasta House paid $4,000 down and agreed to pay the remainderwhen Cosby completed its work.e. On May 3, Cosby 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 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 these transactions.
Pasta House Inc. was organized in January 2019. During the year, the transactions belowoccurred:a. On January 14, Pasta House sold Martin Halter, the firm’s founder and sole owner, 10,000shares of its common stock for $8 per share.b. On the same day, Bank One 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 fromFrank Jakubek for $34,000 cash and a 5-year, $56,000 note payable. The land and buildinghad appraised values of $30,000 and $60,000, respectively.d. On March 1, Pasta House signed an $15,000 contract with Cosby Renovations to remodelthe inside of the building. Pasta House paid $4,000 down and agreed to pay the remainderwhen Cosby completed its work.e. On May 3, Cosby 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 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 these transactions.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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| Pasta House Inc. was organized in January 2019. During the year, the transactions below occurred: a. On January 14, Pasta House sold Martin Halter, the firm’s founder and sole owner, 10,000 shares of its common stock for $8 per share. b. On the same day, Bank One 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 an $15,000 contract with Cosby Renovations to remodel the inside of the building. Pasta House paid $4,000 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 $11,000. f. On May 20, Pasta House paid $11,000 to Cosby Renovations. g. On June 4, Pasta House purchased restaurant supplies from Glidden Supply for $650 cash. Required: Prepare a |
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