The Opening Balance in the Computer Account for Adara Corp

question 38

Essay

The opening balance in the computer account for Adara Corp for fiscal 2017 was $100,000; the closing balance was $107,000.The corresponding balances in the accumulated depreciation accounts were $63,000 and $67,500.During the year Adara scrapped a computer originally costing $13,000 having a remaining net book value of $3,500 and purchased a replacement machine for cash.
Requirements:
a.Prepare the underlying journal entries to record the foregoing transactions and record events stemming from the transactions (e.g.,the accrual of interest at year-end).
b.For each entry identify the cash flow effects,if any,under both the direct and indirect methods of presentation and classify the cash flow according to its nature.

Explain the behavioural influence perspective and its effect on impulse buying.

Discuss the concept of limited problem solving in consumer decision making.

Illustrate how consumers reconcile the rational and experiential aspects of decision making.

Understand the concepts of maximizing and satisficing in decision-making processes.

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Definitions:

Liking Reciprocal

Reciprocal liking is the phenomenon where people tend to develop a preference for individuals who express liking for them, reinforcing mutual attraction and social bonding.

Opposite Qualities

Characteristics or attributes that are diametrically different from each other, often used to describe contrasting traits between entities or concepts.

Social Exchange Theory

A theoretical framework suggesting that social behavior is the result of an exchange process, aiming to maximize benefits and minimize costs.

Comparison Level

An expectation about the outcome of a relationship based on past experiences, which serves as a standard for evaluating current and future relationships.