||A $26,000 note payable is retired at its $26,000 carrying (book) value in exchange for cash.
||The only changes affecting retained earnings are net income and cash dividends paid.
||New equipment is acquired for $61,600 cash.
||Received cash for the sale of equipment that had cost $49,400, yielding a $2,500 gain.
||Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement.
||All purchases and sales of merchandise inventory are on credit.