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.

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 $704,574Interest Income$100,000Gross Sales Receipts2,410,000Beginning Inventory9,607Direct Labor(203,102)Direct Materials purchased(278,143)Direct other costs(249,356)Ending Inventory3,467Salaries 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$704,574A 2018 comparative balance sheet appears below. 1-Jan31-Dec Cash$47,840$ ?Accounts Receivable93,100123,104Inventories9,6073,467Prepaid expenses8,33317,582Building and equipment138,203185,348Accumulated depreciation-84,235(?)Land2,0002,000 Total liabilities and capita214,848$844,422 Accounts payable42,50072,300 Notes Payable (Less than 1 year)4,5002,100 Notes payable (more than 1 year)26,70024,300 Capital stock30,00030,000 Retained earnings111,148? Total liabilities and capital214,848$844,422Premium’s accounting firm provides the following additional information.Cash distributions to shareholders $100,000Beginning balance, accumulated adjusted account $111,148Using 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.

Get Free Homework Help Online from Expert Tutors

Ask Your Question Now!!!
Don`t copy text!
WeCreativez WhatsApp Support
Our customer support team is here to answer your questions. Ask us anything!
👋 Hi, how can I help?