Fluff, Inc. Balance Sheet December 31, 2020 Assets Liabilities Current Assets Current Liabilities Cash 16,800 Accounts Payable 27,000 Accounts Receivable 42,000 Wages Payable 1,000 Inventory 18,000 Taxes Payable 2,100 Total Current Assets 76,800 Total Current Liabilities 30,100 Long-Term Liabilities Fixed Assets Note Payable- Mike 10,000 Land 40,000 Total Liabilities 40,100 Owners' Equity Other Assets Common Stock 72,000 Security Deposit 2,000 Retained Earnings 6,700 Total Owners' Equity 78,700 Total Liabilities and Total Assets 118,800 Owners' Equity 118,800

97 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 1" you issued 10 shares of common stock for $3,000. On December 31" 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. Prepare Journal Entries, T-accounts, an Income Statement, a Statement of Owners' Equity and a Balance Sheet. 97 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 1" you issued 10 shares of common stock for $3,000. On December 31" 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. Prepare Journal Entries, T-accounts, an Income Statement, a Statement of Owners' Equity and a Balance Sheet