stion 7: 7. A company issues 7,000 common shares and a $40,000 note payable in exchange for equipment valued at $105,000. Does the entry to record this transaction include a credit to I (a)Retained Earnings for $65,000; (b)(b) Common Shares for $65,000; (c)(c) Common Shares for $105,000? McGraw Hill Ltd. 12-46