The Following Activities Took Place During the Month of November

question 7

Essay

The following activities took place during the month of November at a corporation that operates a shoe repair shop.
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:
Indicate what accounts would be used to record the initial transaction arising from each activity.

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Definitions:

Cellular Respiration

Pathway that uses an electron transfer chain to harvest energy from an organic molecule and make ATP. See aerobic respiration.

Glucose Molecules

A simple sugar that is an important energy source in living organisms and a component of many carbohydrates.

ATP Synthesis

The process by which energy is stored in the form of adenosine triphosphate (ATP) in cells, commonly occurring in the mitochondria via cellular respiration.

Electron Transfer Chain

In a cell membrane, series of enzymes and other molecules that accept and give up electrons, thus releasing the energy of the electrons in small, usable steps.