Massimo Company has been operating for one year $(2022).$ You are a member of the management team investigating expansion

ideas, all of which will require borrowing funds from banks. At the start of $2023,$ Massimo's T$-$account balances were as follows:

Assets:

Cash Short$-$Term Investments Property and Equipment

$2,000$I $3,000$I $3,500$I

Liabilities:

Short$-$Term Notes Payable Long$-$Term Notes Payable

I $3,200$ I $1,300$

Shareholders' Equity:

Contributed Capital Retained Earnings

I $1,100$ I $2,900$

Required:

$1.$ Using the data from these T$-$accounts, complete the accounting equation on December $31,2022$:

Assets $$8,500=$ Liabilities: $$4,500+$ Shareholders' Equity $$4,000$

$2.$ Enter in the T$-$accounts the following transactions that occurred in $2023$:

$6.$ Paid one$-$half on the long$-$term note payable.

b$.$ Sold $$1,500$ of the investments for $$1,500$ cash.

c$.$ Sold one$-$half of the property and equipment for $$1,750$ cash.

d$.$ Borrowed $$3,000$ from the bank and signed a note promising to pay the principal and interest at an annual rate of $5$ percent in three

years.

e$.$ Paid $$600$ in dividends to shareholders.