Problem 2-7 HW tw Completo Frances's Fine Fluffs, Inc., Year 1 - 20X1 Frances opened a Fluff business on January 1, 20X1. She planned to operate her business as a corporation, Frances's Fine Fluffs, Inc. (FFF, Inc.). She started the company with $400,000; 200,000 of her own money, for which she received 5,000 shares of common stock, and $200,000 borrowed from her Uncle Phil (Note Payable). The Note Payable to Uncle Phil requires that the company pay the interest at 4% annually on December 31. FFF paid the $8,000 interest on December 31, 20X1. FFF is required to repay the principal at the end of year 20X5. During the year FFF bought 12 Fluffs for $40,000 each. FFF sold ten of the Fluffs for $50,000 each. Other expenses FFF paid cash for were wages, $15,000; rent $12,000; and utilities $6,000. FFF signed a 20-year lease and put down a rent security deposit of $1,000. In addition to the cash Frances invested on January 1st, on July 1st she also invested a piece of land she owned in the business that was worth $50,000 in exchange for 500 shares of common stock. At the end of the year, FFF owed a worker wages of $1,000. FFF paid a dividend of $8,000. The tax rate is 30% and FFF will pay 20X1 taxes in 20X2. So how did FFF do? Prepare Journal Entries, T-Accounts, Financial Statements Begin Bo