Massimo Company has been operating for one year (2016). You are a member of the management team investigating expansion ideas, all of which will require borrowing funds from banks. At the start of 2017, Massimo's T-account balances were as follows: Assets: Cash Short-Term Investments Property and Equipment 1,800 2,800 3,300 Liabilities: Short-Term Notes Payable Long-Term Notes Payable 3,000 1,100 Shareholders' Equity: Contributed Capital Retained Earnings 1,080 2,720 Required: 1. Using the data from these T-accounts, complete the accounting equation on January 1, 2017: Assets Liabilities Shareholders' Equity $ 3,800 $ 7,900 11 $ 4,100 + 2. Enter in the T-accounts the following transactions that occurred in 2017: a. Paid one-half of the principal on the long-term note payable. b. Sold $1,400 of the investments for $1,400 cash. c. Sold one-half of the property and equipment for $1,650 cash. d. Borrowed $2,800 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 $580 in dividends to shareholders. Cash Short-Term Investments Beg. bal. 1,800 Beg. bal 2,800 a. b. c. d. End. bal. 1,800 End. bal. 2,800 Property and Equipment 3,300 Short-Term Notes Payable 3,000 Beg. bal. Beg. bal. End. bal. 3,300 3,000 End. bal. Long-Term Notes Payable 1,100 Beg. bal. Contributed Capital 1,080 Beg. bal. 1,100 End. bal. 1.080 End. bal. Retained Earnings 2,720 Beg. bal. 2,720 End. bal