Exam Laboratories Gathered the Following Data for the Year Ended

question 80

Essay

Exam Laboratories gathered the following data for the year ended December 31,20X3,related to its equipment.
$\begin{array}{llc}&&\text { Accumulated}\\&\text { Equipment }&\text { Depreciation } \\&&\text { Equipment }\\\text { January } 1,20 \times 3, \text { belance } & \$ 85,000 & \$ 40,000 \\\text { Total debits to the account } & 55,000 & ? \\\text { Total credits to the account } & ? & 51,000 \\\text { December } 31,20 \times 3 \text {, balance } & 92,000 & 56.000\end{array}$
Based on the above data,prepare the journal entry to record the sale of equipment during the year
for $11,500 cash.

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Definitions:

Long-Term Liabilities

Debts or obligations that are not due for settlement within one year and are often used to finance the purchase of long-term assets.

Indirect Method

A way of calculating cash flows from operating activities in the cash flow statement by adjusting net income for changes in balance sheet accounts.

Cash Receipts

Represents the total cash inflows from transactions, including sales and asset dispositions, during a specific period.

Cash Payments

Financial transactions that involve the transfer of cash to settle a debt or purchase goods and services.