The Opening Balance in the Computer Account for Adara Corp

question 40

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.
Required:
a.Prepare the underlying journal entries to record the foregoing transactions and record events stemming from the transactions.
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:

Meaningless Inkblots

Images without inherent meaning used in psychological tests (e.g., Rorschach test) to explore the underlying thoughts, feelings, and patterns of perception of the individual.

Carl Jung

A psychiatrist and psychoanalyst from Switzerland who initiated the field of analytical psychology, focusing on the significance of the personal psyche and the individual's journey towards completeness.

Alfred Adler

An Austrian psychotherapist and founder of the school of individual psychology who emphasized the importance of the feeling of inferiority in the development of personality.

Karen Horney

A 20th-century psychoanalyst known for her theories on neurosis, personality development, and the concept of basic anxiety.