Date Jan. 1 Balance July 31 Purchase of equipment Sept. 2 Purchase of equipment Nov. 10 Cost of equipment sold Equipment Debit Credit Balance 160,000 71,900 55,000 231,900 286,900 48,200 238,700 Accumulated Depreciation-Equipment Date Debit Credit Balance Jan. 1 Balance 70,100 Nov. 10 Accumulated depreciation on equipment sold 16,700 53,400 Dec. 31 Depreciation for year 25,000 78,400 Retained Earnings Date Jan. 1 Balance Debit Credit Balance 105,200 Aug. 23 Dividends (cash dividends declared and paid) 18,900 86,300 Dec. 31 Net income 66,100 152,400