132 Fluff Business Year 4 (2022) You bought 11 more Fluffs for $5,000 each and sold 12 for $9,000 each, same terms as last year. Paid the money owed to suppliers (Accounts Payable) at the beginning of the year and collected all money due you at the beginning of the year (Accounts Receivable). On January 1 you took out a loan for 20,000 at 7% interest. After you took out the loan, you purchased a delivery truck for $30,000. For the loan, you will make 4 equal payments that include interest at 7%. You make the first payment on December 31" of this year. You estimate the truck will last about 6 years and then be worth $6,000. You paid your worker S14,000 and owed her $3,000 more at the end of the year. You paid eleven months of rent @ $1,000 per month. On December 31" you paid the furniture & fixtures loan payment. Paid Uncle Mike his interest and also paid the principal balance owed on December 31. On April 1, the company issued 100 shares of common stock for $20,000. The tax rate is still 30% and during the year you paid last year's taxes. Taxes for this year will be paid next year. At the end of the year, you paid a dividend to shareholders of $8,000. Prepare Journal Entries, T-accounts, an Income Statement, a Statement of Owners' Equity, Balance Sheet and Cash Flow. Fluff, Inc Balance Sheet December 31, 2021 Inventory 4 fluffs 14.000 each Purchase inventory with 40% down Sall inventory with 50% down 360 shares of common stock at Dec 31, 2021 Year 3 is on page 17 $ Assets Current Assets Cash Acoounts Receivable Inventory Prepaid Rent 12,100 52,000 16,000 1.000 Liabilities Current Laibilities Accounts Payable Taxes Payable Wages Payable Note Payable.FAF Note Payable Mike Total Current Liabilities 26,400 8,700 2.000 10,000 Or 10,000 57.100 Current Portion of Long Term Debt 20,000 81,100 $ 45,000 Long-Term Debt Note Payable F &F Total Liabilities 10.000 67,100 Total Current Assets Fixed Assets Office Equipment Less: Accumulated Depreciation Subtotal Land Net Fixed Assets Other Assets Security Deposit Total Assets (4,000) 41,000 40,000 $ 75,000 22.000 Owners' Equity 81,000 Common Stock Retained Earning 2.000 Total Owners' Equity 164,100 Total Liabilities and Owners' Equity 97.000 $ $ 164,100 TON Sh1 Fluff Business, 2021, Year 31, you paid the amounts owed for Fluffs at the end of year 2020 and collected all of the amounts owed by customers at the end of last year. You purchased eleven more Fluffs for $4,000 each and at the same terms as last year. During the year you sold 13 Fluffs for $8,000 each at the same terms as last year. On January 1, you purchased furniture fixtures for $45,000. You put $15,000 down and financed the balance at 10%. You will make annual payments on December 31" for three years of the interest plus $10,000 on the principal. You estimate that you will use them for 10 years and then they will be worth $5,000. On June 30, you paid $4,800 for a two-year insurance policy. You paid your worker $8,000 and owed her $2,000 more at the end of the year. You also paid $13,000 for 13 months of rent. This year you declared and paid a dividend of $5,000 to your shareholders. On October 1st you issued 10 shares of common stock for $3,000. On December 31st you paid the first payment on the furniture & fixtures loan. Also on December 31, you paid Mike his interest. You paid the taxes owed at the end of last year. The tax rate is 30%. This year's taxes will be paid next year. You use the FIFO inventory system Prenare Journal Fntries Taccount in Ingomon