Problem 4-1 Fluff Inc., Year 2 - 20X2 (See page 81 for beginning balances) During the second year, you bought 15 Fluffs and sold 12, same prices as year 1, but you have arrange terms that allow you to pay 40% of the purchase price in cash and the rest in one year. You now sell Fluffs for 50% down and the rest will be paid for by the customer next year. You paid rent of S12,000. You hired a worker whom you paid $11,000 (a Miami graduate). Tax rate is the same (30% of taxable income). Paid 20x1 taxes. You will pay 20x2 taxes next year. You paid the interest to Mike on December 31. You paid office expenses of $10,000 and a dividend of $1,000. You also paid $6,000 for advertising in The Post. On February 1"you issued 50 shares of common stock for $12,000. You owe your employee S1,000 more in wages at the end of the year. So how did you do? Prepare Journal Entries, T-Accounts, Income Statement, Statement of Owners' Equity and Balance Sheet