The main question is to solve year 4.The following picture is the beginning balances

the same terms are :-pay 40% of the purchase price in cash and the rest in one year

- you sell fluffys for 50% down and the rest will be paid for by the customer next year

Previous year

$ 7,300 52.000 16.000 3.500 1.000 79,900 Flull, Inc. Balance Sheet December 31, 2013 Liabilities Current Liabilities Taxes Payable Accounts Payable Wages Payable Note Payable- Mike Current LT Debt Total Current Liabilities Long-Term Liabilities Note Payable Furn & Fix Total Long-Term Liabilities Total Liabilities Assets Current Assets Cash Account Rec Inventory Prepaid Insurance Prepaid Renk Total Current Assets Fixed Assets Land Furn & Fix Ace Depr FAF Total Fixed Assets Other Assets Security Deposit $ 8.340 26,400 2.000 10.000 10.000 56.740 40.000 45,000 14.000 81000 10.000 10,000 66,740 2.000 Total Assets 152.900 Dwers' Equity Common Stock Hetained Earnings Total Owners' Equity Total Liabilities and Owners' Equity $ 75,000 21,160 96.160 $112.900 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 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 31st, 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 Business, 2021, Year 3, 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 & foxtures 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 $ 7,300 52.000 16.000 3.500 1.000 79,900 Flull, Inc. Balance Sheet December 31, 2013 Liabilities Current Liabilities Taxes Payable Accounts Payable Wages Payable Note Payable- Mike Current LT Debt Total Current Liabilities Long-Term Liabilities Note Payable Furn & Fix Total Long-Term Liabilities Total Liabilities Assets Current Assets Cash Account Rec Inventory Prepaid Insurance Prepaid Renk Total Current Assets Fixed Assets Land Furn & Fix Ace Depr FAF Total Fixed Assets Other Assets Security Deposit $ 8.340 26,400 2.000 10.000 10.000 56.740 40.000 45,000 14.000 81000 10.000 10,000 66,740 2.000 Total Assets 152.900 Dwers' Equity Common Stock Hetained Earnings Total Owners' Equity Total Liabilities and Owners' Equity $ 75,000 21,160 96.160 $112.900 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 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 31st, 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 Business, 2021, Year 3, 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 & foxtures 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