Massimo Company has been operating for one year (2019). You are a member of the management team investigating expansion ideas, all of which will require borrowing funds from banks. At the start of 2020, Massimos T-account balances were as follows: Assets: Cash 1,200 Short-Term Investments 2,200 Property and Equipment 2,700 Liabilities: Short-Term Notes Payable 2,400 Long-Term Notes Payable 500 Shareholders Equity: Contributed Capital 1,020 Retained Earnings 2,180 Required:

1. Using the data from these T-accounts, complete the accounting equation on January 1, 2020:

2. Enter in the T-accounts the following transactions that occurred in 2020: Paid one-half of the principal on the long-term note payable. Sold $1,100 of the investments for $1,100 cash. Sold one-half of the property and equipment for $1,350 cash. Borrowed $2,200 from the bank and signed a note promising to pay the principal and interest at an annual rate of 5 percent in three years. Paid $520 in dividends to shareholders.

3. Compute ending balances in the T-accounts to complete the statement of financial position on December 31, 2020:

4. Using the ending balances in the T-accounts, prepare a classified statement of financial position at December 31, 2020, in good form.

5. Calculate the current ratio at December 31, 2020. (Round the final answer to 2 decimal places.)