I do not understand the solution. What is debit and what is credit of the solution? Can you also explain why they are subtracting what?

d. Property, plant and equipment (at cost) had a balance of $3,700 on January 1, Year 8 and $3,940 on December 31, Year 8. Accumulated depreciation had a balance of $1,290 on January 1, Year 8 and $1,540 on December 31, Year 8. Give the journal entry that Morry Corporation made in its accounting records during Year 8 to record the sale of the equipment. $11,400 60 16 Morry Corporation Income Statement For the Year Ended December 31, Year 8 Sales Revenue Gain on Sale of Equipment Interest Revenue Total Revenues Cost of Goods Sold Selling and Administrative Expense Interest Expense Income Tax Expense Net Income $11,476 (7,070) (2,240) (210) (752 $ 1.204 $1,204 370 (60) (160) (70) (25) (150) 140 175 $1.424 Morry Corporation Statement of Cash Flows For the Year Ended December 31, Year 8 Operations Net Income Depreciation Gain on Sale of Equipment Increase in Accounts Receivable Increase in Prepayments Decrease in Income Tax Payable Decrease in Other Current Liabilities Decrease in Inventories Increase in Accounts Payable-Merchandise Cash Flow from Operations Investing Sale of Equipment Acquisition of Property, Plant and Equipment Acquisition of Marketable Securities Cash Flow from Investing Financing Decrease in Short-term Borrowing Increase in Long-term Debt Increase in Common Stock Decrease in Long-term Debt Dividends Cash Flow from Financing Change in Cash Cash-January 1, Year 8 Cash-December 31, Year 8 S 310 (610) (1.300 $(1,600) $(120) 550 400 (200) (390) $ 240 $ 64 850 S 9141 d. 120 Cash 310 Accumulated Depreciation ($1,290 + $370 - $1,540) Prop., Plant, and Equip. ($3,700 + $610 - $3,940) Gain on Sale of Equipment 60 - 370