Musical Instruments Company Sells Musical Instruments Determine the Balance in the Cash Account and Prepare the Month

question 125

Essay

Musical Instruments Company sells musical instruments.On December 31,2019,after its first month of business,the sole proprietorship had the following balances in its accounts,listed alphabetically.
$$\begin{array} { | l | r | } \hline \text { Accounts Receivable } & \$ 5,000 \\\hline \text { Accounts Payable } & 15,000 \\\hline \text { Advertising Expense } & 2,000 \\\hline \text { Building } & 16,500 \\\hline \text { Cash } & ? \\\hline \text { Torgensen, Capital } &5,000 \\ \hline \text { Torgensen, Withdrawals } & 1,200\\\hline \text { Equipment } & 2,000 \\\hline \text { Land } & 70,000 \\\hline \text { Notes Payable } & 60,000 \\\hline \text { Office Supplies } & 3,400 \\\hline \text { Prepaid Rent } & 1,200 \\\hline \text { Salaries Expense } &4,000 \\\hline \text { Service Revenue } & 72,000 \\\hline \text { Utilities Expense } &4,100\end{array}$$ Determine the balance in the cash account and prepare the trial balance.

---

Definitions:

Firm

A business organization that sells goods or services in pursuit of profits.

Equilibrium Wage

The wage rate at which the quantity of labor supplied equals the quantity of labor demanded.

Structural Unemployment

Unemployment that results from industrial reorganization, typically due to technological change, rather than fluctuations in supply or demand.

Equilibrium Level

A state in which market supply and demand balance each other, resulting in stable prices and quantities.