ACCT429 DeVry University Chicago Tax Form Computations Case Scenario
To Buy Tutorial Copy & Paste below Link into Your Browser
To Order Original Work 100% Original and Plagiarism Free Paper Email us at ( info.homeworklance@Gmail.com )
ACCT 429 DeVry University Chicago Tax Form Computations Case Scenario
John Parsons (123-45-6871) and George Smith (123-45-6782) are 70% and 30% owners, respectively, of Premium, Inc. (11-1111111), a candy company located at 1005 16th Street, Cut and Shoot, TX 77303. Premium’s S election was made on January 15, 2011, its date of incorporation. The following information was taken from the company’s 2018 income statement. Premium’s book income for the year was $704,574
|
Interest Income |
$100,000 |
|
|
Gross Sales Receipts |
2,410,000 |
|
|
Beginning Inventory |
9,607 |
|
|
Direct Labor |
(203,102) |
|
|
Direct Materials purchased |
(278,143) |
|
|
Direct other costs |
(249,356) |
|
|
Ending Inventory |
3,467 |
|
|
Salaries and wages |
(442,103) |
|
|
Officers salaries |
(150,000) |
|
|
Repairs |
(206,106) |
|
|
Depreciation expenses |
(15,254) |
|
|
Interest expenses |
(35,222) |
|
|
Rent expenses (operating) |
(40,000) |
|
|
Taxes |
(65,101) |
|
|
Charitable contribution (Cash) |
(20,000) |
|
|
Advertising expenses |
(20,000) |
|
|
Payroll penalties |
(15,000) |
|
|
Other deductions |
(59,899) |
|
|
Book income |
$704,574 |
|
A 2018 comparative balance sheet appears below.
|
1-Jan |
31-Dec |
|
|
Cash |
$47,840 |
$ ? |
|
Accounts Receivable |
93,100 |
123,104 |
|
Inventories |
9,607 |
3,467 |
|
Prepaid expenses |
8,333 |
17,582 |
|
Building and equipment |
138,203 |
185,348 |
|
Accumulated depreciation |
-84,235 |
(?) |
|
Land |
2,000 |
2,000 |
|
Total liabilities and capita |
214,848 |
$844,422 |
|
Accounts payable |
42,500 |
72,300 |
|
Notes Payable (Less than 1 year) |
4,500 |
2,100 |
|
Notes payable (more than 1 year) |
26,700 |
24,300 |
|
Capital stock |
30,000 |
30,000 |
|
Retained earnings |
111,148 |
? |
|
Total liabilities and capital |
214,848 |
$844,422 |
Premium’s accounting firm provides the following additional information.
Cash distributions to shareholders $100,000
Beginning balance, accumulated adjusted account $111,148
Using the preceding information, prepare a complete Form 1120s (Links to an external site.) and Schedule K-1s for John Parsons and George Smith, both of whom live at 5607 20th Street, Cut and Shoot, TX 77303. Do not complete the Forms 1125-A (Links to an external site.), 1125-E (Links to an external site.), and 4562 (Links to an external site.). If any information is missing, make realistic assumptions.