Avatar Company Uses the Indirect Method to Prepare Its Statement

question 5

Essay

Avatar Company uses the indirect method to prepare its statement of cash flows. Using the worksheet shown below, enter the adjustments needed to record the following transactions:
Issued Common Stock for $28,000
Issued new Long-Term Notes Payable for $34,000
Repaid Long-Term Notes Payable for $40,000

---

Definitions:

Preoperational Stage

The second stage in Piaget's theory of cognitive development, occurring roughly between the ages of 2 and 7, characterized by symbolic thinking, egocentrism, and a lack of logical reasoning.

Birthday Parties

Celebratory events marking the anniversary of a person's birth, often involving social gatherings, decorations, and customs like cake and gifts.

Conservation

A cognitive principle in child development discovered by Piaget, indicating the understanding that quantity doesn't change despite changes in the shape or appearance of objects.

Piagetian Principle

A concept from Jean Piaget's theory, indicating that cognitive development occurs through a series of stages, characterized by distinct ways of thinking and understanding the world.