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Massimo Company has been operating for one year ( 2 0 2 2 ) . You are a member of the management team investigating expansion
Massimo Company has been operating for one year You are a member of the management team investigating expansion
ideas, all of which will require borrowing funds from banks. At the start of Massimo's Taccount balances were as follows:
Assets:
Cash ShortTerm Investments Property and Equipment
I I I
Liabilities:
ShortTerm Notes Payable LongTerm Notes Payable
I I
Shareholders' Equity:
Contributed Capital Retained Earnings
I I
Required:
Using the data from these Taccounts, complete the accounting equation on December :
Assets $ Liabilities: $ Shareholders' Equity $
Enter in the Taccounts the following transactions that occurred in :
Paid onehalf on the longterm note payable.
b Sold $ of the investments for $ cash.
c Sold onehalf of the property and equipment for $ cash.
d Borrowed $ from the bank and signed a note promising to pay the principal and interest at an annual rate of percent in three
years.
e Paid $ in dividends to shareholders.
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