Russell Company was incorporated on January 1, 2012, 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 book keeper 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, 2012 Account Titles Credits Debits Cash Accounts Receivable 30,500 Equipment and Fixtures Wages Payable Notes Payable Capital Stock 50,000 $ 10,000 50,000 120,000 Service Revenue 60,500 Wage and Salary Expense Advertising Expense Rent Expense 24,600 12,500 5,200