The three accounts shown below appear in the general ledger of Jurena Corp.

during 2012.

Instructions From the postings in the accounts, indicate how the information is reported on a statement of cash flows using the indirect method. The loss on sale of equipment was $8,000.
(Hint: Cost of equipment constructed is reported in the investing activities section as a decrease in cash of $53,000.)

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Equipment Date Debit Credit. Balance Jan. 1 July 31 Balance Purchase of equipment Sept. 2 Cost of equipment constructed Nov. 10 Cost of equipment sold 160,000 70,000 230,000 53,000 283,000 49,000 234,000 Accumulated Depreciation-Equipment Date Debit Credit Balance Jan. 1 Balance 71,000 Nov. 10 Accumulated depreciation on equipment sold 16,000 55,000 Dec. 31 Depreciation for year 28,000 83,000 Retained Earnings Date Jan. 1 Balance Aug. 23 Dividends (cash) Dec. 31 Net income Debit Credit Balance 105,000 14,000 91,000 72,000 163,000