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.

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Definitions:

Perimenopause

The transitional phase before menopause when a woman's body undergoes physical changes and hormonal fluctuations.

Menopause

The period in a woman's life, typically between 45 and 55 years of age, marking the end of reproductive capability.

Andropause

Gradual changes in the sexual hormones and reproductive system of middle-aged males.

Erikson

Refers to Erik Erikson, a developmental psychologist known for his theory on the psychosocial development of humans, highlighting eight stages that cover the entire lifespan.