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Complete the steps in the measurement of external transactions (LO24, 2-5, 2-6)

Blackhawks Incorporated had the following balances at the beginning of November.

\begin{tabular}{|c|c|c|c|}
\hline \multicolumn{4}{|c|}{BLACKHAWKS INCORPORATED} \\
\hline & Trial Balance & & \\
\hline Accounts & No. & Debits & Credits \\
\hline Cash & & [tex]$\$[/tex] 2,500[tex]$ & \\
\hline Accounts Receivable & & 530 & \\
\hline Supplies & & 630 & \\
\hline Equipment & & 8,700 & \\
\hline Accounts Payable & & & $[/tex]\[tex]$ 1,650$[/tex] \\
\hline Notes Payable & & & 3,300 \\
\hline Common Stock & & & 6,300 \\
\hline Retained Earnings & & & 1,110 \\
\hline Totals & & [tex]$\$[/tex] 12,360[tex]$ & $[/tex]\[tex]$ 12,360$[/tex] \\
\hline
\end{tabular}

The following transactions occurred in November:

November 1: Issue common stock in exchange for [tex]$\$[/tex] 12,300[tex]$ cash.

November 2: Purchase equipment with a long-term note for $[/tex]\[tex]$ 2,800$[/tex] from Spartan Corporation.

November 4: Purchase supplies for [tex]$\$[/tex] 1,200[tex]$ on account.

November 10: Provide services to customers on account for $[/tex]\[tex]$ 8,300$[/tex].

November 15: Pay creditors on account, [tex]$\$[/tex] 1,000[tex]$.

November 20: Pay employees $[/tex]\[tex]$ 2,300$[/tex] for the first half of the month.

November 22: Provide services to customers for [tex]$\$[/tex] 10,300[tex]$ cash.

November 24: Pay $[/tex]\[tex]$ 1,120$[/tex] on the note from Spartan Corporation.

November 26: Collect [tex]$\$[/tex] 6,300[tex]$ on account from customers.

November 28: Pay $[/tex]\[tex]$ 1,090$[/tex] to the local utility company for November gas and electricity.

November 30: Pay [tex]$\$[/tex] 4,389$ rent for November.

Required:
1. Record each transaction. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
2. Post each transaction to the appropriate T-accounts and calculate the balance of each account at November 30. (Hint: Be sure to include the balance at the beginning of November in each T-account.)
3. Prepare a trial balance as of November 30.

\textit{Note: The numbers in the "No." column are not necessary for the completion of this task and can be left blank or used as needed.}

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Answer :

GinnyAnswer
To solve this problem, we will follow these steps:

1. Record Each Transaction:
- November 1: Issue common stock in exchange for [tex]$12,300 cash. - November 2: Purchase equipment with a long-term note for $[/tex]2,800 from Spartan Corporation.
- November 4: Purchase supplies for [tex]$1,200 on account. - November 10: Provide services to customers on account for $[/tex]8,300.
- November 15: Pay creditors on account, [tex]$1,000. - November 20: Pay employees $[/tex]2,300 for the first half of the month.
- November 22: Provide services to customers for [tex]$10,300 cash. - November 24: Pay $[/tex]1,120 on the note from Spartan Corporation.
- November 26: Collect [tex]$6,300 on account from customers. - November 28: Pay $[/tex]1,090 to the local utility company for November gas and electricity.
- November 30: Pay [tex]$4,389 rent for November. 2. Post Each Transaction to T-Accounts and Calculate Balances at November 30 (incorporating the initial balances): - Cash: Initial Balance $[/tex]2,500
- Nov 1: cash + [tex]$12,300 = $[/tex]14,800
- Nov 15: cash - [tex]$1,000 = $[/tex]13,800
- Nov 20: cash - [tex]$2,300 = $[/tex]11,500
- Nov 22: cash + [tex]$10,300 = $[/tex]21,800
- Nov 24: cash - [tex]$1,120 = $[/tex]20,680
- Nov 26: cash + [tex]$6,300 = $[/tex]26,980
- Nov 28: cash - [tex]$1,090 = $[/tex]25,890
- Nov 30: cash - [tex]$4,389 = $[/tex]21,501
- Accounts Receivable: Initial Balance [tex]$530 - Nov 10: accounts receivable + $[/tex]8,300 = [tex]$8,830 - Nov 26: accounts receivable - $[/tex]6,300 = [tex]$2,530 - Supplies: Initial Balance $[/tex]630
- Nov 4: supplies + [tex]$1,200 = $[/tex]1,830
- Equipment: Initial Balance [tex]$8,700 - Nov 2: equipment + $[/tex]2,800 = [tex]$11,500 - Accounts Payable: Initial Balance $[/tex]1,650
- Nov 4: accounts payable + [tex]$1,200 = $[/tex]2,850
- Nov 15: accounts payable - [tex]$1,000 = $[/tex]1,850
- Notes Payable: Initial Balance [tex]$3,300 - Nov 2: notes payable + $[/tex]2,800 = [tex]$6,100 - Nov 24: notes payable - $[/tex]1,120 = [tex]$4,980 - Common Stock: Initial Balance $[/tex]6,300
- Nov 1: common stock + [tex]$12,300 = $[/tex]18,600
- Retained Earnings: Initial Balance [tex]$1,110 (no transactions affect this during the period) 3. Prepare a Trial Balance as of November 30: - Assets: - Cash: $[/tex]21,501
- Accounts Receivable: [tex]$2,530 - Supplies: $[/tex]1,830
- Equipment: [tex]$11,500 - Liabilities: - Accounts Payable: $[/tex]1,850
- Notes Payable: [tex]$4,980 - Equity: - Common Stock: $[/tex]18,600
- Retained Earnings: [tex]$1,110 4. Total of Trial Balance: - Debits (Assets Total): $[/tex]21,501 + [tex]$2,530 + $[/tex]1,830 + [tex]$11,500 = $[/tex]37,361
- Credits (Liabilities + Equity Total): [tex]$1,850 + $[/tex]4,980 + [tex]$18,600 + $[/tex]1,110 = [tex]$26,540 Finally, consolidating everything, we get the following final balances: - Cash: $[/tex]21,501
- Accounts Receivable: [tex]$2,530 - Supplies: $[/tex]1,830
- Equipment: [tex]$11,500 - Accounts Payable: $[/tex]1,850
- Notes Payable: [tex]$4,980 - Common Stock: $[/tex]18,600
- Retained Earnings: [tex]$1,110 Ensuring the trial balance matches: - Total Assets: $[/tex]37,361
- Total Liabilities and Equity: [tex]$26,540 These values confirm the balances and the trial balance as of November 30 for Blackhawks Incorporated: \begin{tabular}{|c|c|c|c|} \hline \multicolumn{4}{|c|}{ BLACKHAWKS INCORPORATED } \\ \hline & Trial Balance & & \\ \hline Accounts & Debits & Credits \\ \hline Cash & \$[/tex]21,501 & \\
\hline Accounts Receivable & \[tex]$2,530 & \\ \hline Supplies & \$[/tex]1,830 & \\
\hline Equipment & \[tex]$11,500 & \\ \hline Accounts Payable & & \$[/tex]1,850 \\
\hline Notes Payable & & \[tex]$4,980 \\ \hline Common Stock & & \$[/tex]18,600 \\
\hline Retained Earnings & & \[tex]$1,110 \\ \hline Totals & \$[/tex]37,361 & \$26,540 \\
\hline
\end{tabular}