Russell Company was incorporated on January 1, 2010, 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, 2010 Account Titles Debits Credits 30,500 50,000 Accounts Receivable Equipment and Fixtures Wages Payable Notes Payable 10,000 Service Revenue Wage and Salary Expense Advertising Expense Rent Expense 60,500 24,600 12,500 5,200