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.

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Russell Company Trial Balance January 31, 2008 Account Titles Debits Credits Cash $ ??? Accounts Receivable Equipment and Fixtures 30,500 50,000 Wages Payable $ 10,000 Notes Payable 50,000 Capital Stock 120,000 Service Revenue 60,500 Wage and Salary Expense 24,600 Advertising Expense 12,500 Rent Expense 5,200