1. Prepare T-accounts for all the accounts listed above and enter the beginning balances. You will first need to determine for each account if it has a debit or credit balance. Set aside space for additional T-accounts for income statement accounts.

2. Record each of the transactions in the appropriate T-accounts. You will need to make new T- accounts for income statement accounts. The beginning balance for the income statement accounts is zero.

3. Prepare an income statement for 2019.

Below are the account balances of Ramirez Inc. on January 1, 2019. Ramirez Inc.'s fiscal year ends on December 31. The accounts have normal debit and credit balances. Cash Additional paid-in capital Short-term note payable Accounts payable Other current assets Common stock ($1 par value) $3,750 2,825 510 190 500 240 Short-term investments Long-term note payable Property, plant and equipment Other current liabilities Accounts receivable Retained earnings Inventory $630 720 1,050 179 200 1,946 480 In addition, the following events occurred during 2019: a. Sold $610 of goods on account. Cost of goods sold is $340. b. Purchased a machine for $710. Paid $150 in cash and signed a long-term note for the rest. c. Prepaid $115 for an insurance policy for 2018. Prepaid insurance is recorded in other current assets". d. Paid $180 in cash to employees as wages for work performed in 2018. e. Purchase $135 of inventory from supplier. Paid $45 in cash and owed the rest on account. f. Cleaning supplies are presented as part of other current assets. The beginning balance of cleaning supplies in 2019 was $74. During the year the company purchased additional supplies for $85 in cash. A physical count of the supplies at the end of 2019 showed supplies at the amount of $110. g. A customer paid one-half of the accounts receivable balance in March of 2019. h. Ramirez Inc. paid off long-term notes payable at the amount of $665. The associated interest expense incurred and paid during 2019 was $82. i. Sold $520 of short-term investments for $605 in cash. j. Issued 100 shares for $620 in cash. k. Declared a $23 dividend in 2019. The dividend was paid in 2020. Dividend payable is part of Other current liabilities