Melody Instruments, Inc. sells musical instruments. On December 31, 2017, after its first month of business, Melody Instruments, Inc. had the following balances in its accounts, listed alphabetically
Accounts Receivable $ 5,000
Accounts Payable 15,000
Advertising Expense 2,000
Building 16,500
Cash ?
Common Stock 50,000
Dividends 1,200
Equipment 2,000
Land 70,000
Notes Payable 60,000
Office Supplies 3,400
Salaries Expense 4,000
Service Revenue 72,000
Utilities Expense 4,100
Determine the balance in the cash account and prepare the trial balance.
What will be an ideal response
In the given problem, the cash balance is the difference between the debit and credit columns of the Trial Balance.
Melody Instruments
Trial Balance
December 31, 2017
Account Title Debit Credit
Cash $88,800
Accounts Receivable 5,000
Office Supplies 3,400
Equipment 2,000
Building 16,500
Land 70,000
Accounts Payable $ 15,000
Notes Payable 60,000
Common Stock 50,000
Dividends 1,200
Service Revenue 72,000
Utilities Expense 4,100
Salaries Expense 4,000
Advertising Expense 2,000 _______
Total $197,000 $197,000
Cash balance = $197,000 - $108,200 = $88,800
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