additional information a $30,000 note payable is retired at its $30,000 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 $74,600 cash. received cash for the sale of equipment that had cost $65,600, yielding a $3,700 gain. prepaid expenses and wages payable relate to operating expenses on the income statement. all purchases and sales of inventory are on credit.