Additional Information
A $35,000 note payable is retired at its $35,000 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 $93,000 cash.
Received cash for the sale of equipment that had cost $78,000, yielding a $8,700 gain.
Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement.
All purchases and sales of inventory are on credit.