Maria Sanchez Began Business as Sanchez Law Firm on November

question 105

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Maria Sanchez began business as Sanchez Law Firm on November 1. Record the following November transactions by making entries directly to the T-accounts provided. Then, prepare a trial balance, as of November 30.
a) Sanchez invested $15,000 cash and a law library valued at $6,000.
b) Purchased $7,500 of office equipment from Johnson Bros. on credit.
c) Completed legal work for a client and received $1,500 cash in full payment.
d) Paid Johnson Bros. $3,500 cash in partial settlement of the amount owed.
e) Completed $4,000 of legal work for a client on credit.
f) Sanchez withdrew $2,000 cash for personal use.
g) Received $2,500 cash as partial payment for the legal work completed for the client in (e).
h) Paid $2,500 cash for the legal secretary's salary.

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Definitions:

Monetary Policy

Monetary policy is the macroeconomic policy laid down by the central bank involving management of money supply and interest rates to control inflation, consumption, growth, and liquidity.

Expansionary Policy

A macroeconomic strategy used by governments or central banks to stimulate the economy by increasing money supply or reducing taxes.

Fiscal Policy

Government strategies to influence economic conditions through spending and taxation decisions to manage economic growth, inflation, and unemployment.

Anticipated Policy

A governmental or organizational policy that is expected to be implemented in the future, often already influencing current behaviors and decisions.