1 Bob Jones and Sam Smith formed Jones and Smith 1 Main Street Worcester, MA 01608 Fed ID # 04-1234567 50 POINTS January 1, 1968 They manufacture widgets They use the accrual method of accounting The income statement for year ended 12/31/17 is as follows Sales 1,500,000 850,000 250,000 50,000 25,000 Cost of sales Salaries and Wages Repairs Charitable contributions Guaranteed payments to partners Meals and Entertainment Total expenses 200,000 30,000 1,405,000 Net income 95,000 Jones and Smith split profits 50/50 Prepare form 1065 and Schedule K-1 for Smith Sam Smith 22 Rocky Road Holden, MA 01520 SS # 555-11-6666