The Following Activities Took Place During the Month of November

question 89

Essay

The following activities took place during the month of November at a corporation that operates a clothing store.
1.Salaries and wages in the amount of $33,000 are paid to employees.
2.On the last day of November,the company acquires equipment on account of $55,000.
3.Payment of $375 made on account to a consulting firm for services received from that firm during October.
4.Payment of $12,000 made at the beginning of November for six months of rent; the period covered by the payment begins in November.
5.Utility bills in the amount of $125 arrive in the mail; the bills will not be paid until December.
Required:
For each activity,indicate the amount of expense that would be recorded in November.

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Definitions:

Interest Rate

The cost of borrowing money, typically expressed as a percentage of the amount borrowed.

Fiscal Policy

The employment of expenditure and tax policies by a government to affect economic conditions.

Government Spending

Expenditures made by the government sector on goods and services, including salaries of public servants, public investments, and social security benefits.

Aggregate Demand

The collective requirement for goods and services in an economy, determined at a particular price point over a defined period.