Module 10 Homework Problcm10-1 A Challenging Cash Flow Problem- The following balances are from the beginning of the year for Dezie Company as of December 31, 20X0: For 20X1: Received all beginning accounts receivable and paid all beginning accounts payable Bought six Jumbles at $20,000 cach, 20% down, rest next year Sold eight Jumbles, $40,000 each, 60% down, 40% next year Paid eash wages of $40,000 and at the end of the year owed employees $2,000 Paid utilities of $12,000 and advertising of $10,000 On June 30t, they paid the annual payment of $10,000 principal plus interest on the Note Payable. The note was taken out on June 30 of the previous year. (Can you figure out the interest rate?) On August 1, purchased a new wagon for delivery of the Jumbles for $20,000. On December 1, they declared and paid a dividend of $7,000. On December 31, the company borrowed $75,000 from the bank and used the proceeds to purchase a piece of land. The note is payable in five years. The interest at 6% is payable annually on December 31 of each year starting in 201. During the year they paid $7,000 in rent (rent is $1,000 per month) The company uses the FIFO inventory flow assumption The depreciation for the year was $40,000 The company estimates that 4% of its accounts receivable will never be collected. During the year the company wrote off $1,500 in bad accounts. The tax rate is 30%. During the year the company paid all of last year's taxes and 50% of 20X1 taxes. Prepare Journal Entries, T-Accounts, and Financial Statements for the year 20XI