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, Massimo's T-account balances were as follows: Assets: Cash 1,600 Short-Term Investments 2,600 Liabilities: Short-Term Notes Payable Long-Term Notes Payable 2,800 900 Shareholders' Equity: Contributed Capital 1,060 Required: Retained Earnings 2,540 1. Using the data from these T-accounts, complete the accounting equation on January 1, 2020: Assets Liabilities Shareholders' Equity $ 7,300 = $ 3,700 + $ 3,600 2. Enter in the T-accounts the following transactions that occurred in 2020: Property and Equipment 3,100 a. Paid one-half of the principal on the long-term note payable. b. Sold $1,300 of the investments for $1,300 cash. c. Sold one-half of the property and equipment for $1,550 cash. d. Borrowed $2,600 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 $560 in dividends to shareholders.