Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Fluff Business Year 4 (20Y4) You bought 11 more Fluffs for $5,000 each and sold 12 for $9,000 each, same terms as last year. Paid

Fluff Business Year 4 (20Y4) 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 truck for $30,000. You will make 4 equal payments that include interest@ 7%. You make the first payment on December 31st of this year. You estimate the truck will last about 6 years and then be worth $6,000. You paid your worker $14,000 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 5 \ 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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of Financial Accounting

Authors: Fred Phillips, Robert Libby, Patricia A Libby

3rd Edition

0073527106, 9780073527109

More Books

Students also viewed these Accounting questions

Question

Differentiate 3sin(9x+2x)

Answered: 1 week ago

Question

Compute the derivative f(x)=(x-a)(x-b)

Answered: 1 week ago