Entries Prepared from a Trial Balance and Proof of the Cash Balance Russell Company was incorporated on
Question:
Entries Prepared from a Trial Balance and Proof of the Cash Balance Russell Company was incorporated on January 1, 2008, with the issuance of capital stock in return for $120,000 of cash contributed by the owners. The only other transaction entered into prior to beginning operations was the issuance of a $50,000 note payable in exchange for equipment and fixtures. The following trial balance was prepared at the end of the first month by the bookkeeper for Russell Company:
Required 1. Determine the balance in the Cash account.
2. Identify all of the transactions that affected the Cash account during the month. Use a T account to prove what the balance in Cash will be after all transactions are recorded.
Step by Step Answer:
Financial Accounting The Impact On Decision Makers
ISBN: 9780324655230
6th Edition
Authors: Gary A. Porter, Curtis L. Norton