ACNT 1347 Form 1065 Practice Tax Return Facts in 2019 ABC LLP, a limited liability partnership, 123 Oak Dr Houston TX 77002 EIN 74 1111111 Date Business Started 1 1 2000 Business Activity retail sales Product Family Clothing Business code 448140 The partnership is a cash basis business Total Assets $3,050,000 Gross Receipts $1,000,000 Cost of Goods Sold $400,000 (assume no beginning and ending inventory and purchases are $400,000) ABC LLP uses FIFO method for determining the cost of goods sold and the cash method for all other income and expenses Guaranteed payment for services in the amount of $200,000 was paid to Bee Hint When using Tax Act, open up a Schedule K 1 for each partner Then, enter guaranteed payment on Bee Jones K 1 The amount will carry over to the Form 1065, Schedule K Bee is also the Tax Matters partner Salaries and wages paid to employees was $50,000 Office Rent paid for home office was $10,000 Supplies expense totaled $40,000 Partner information is as follows Partner Capita l Profit Loss Residency SSN Address Bee Jones40 40 40 TX222 22 2222124 Oak Dr, Hou TX 77002 John Smith40 40 40 TX333 33 3333125 Oak Dr, Hou TX 77002 Julie Smart20 20 20 TX444 44 4444126 Oak Dr Hou TX 77002 All partners materially participate in the day to day partnership operations All partners use their tax basis as their capital account balances The partner's beginning Capital Balances at 1 1 2019 are as follows Partner Capital Balance Bee Jones$1,100,000 John Smith$1,100,000 Julie Smart$550,000 Assets 1 1 2019 12 31 2019 Cash $250,000 $550000 Land $2,500,000 $2,500,000 Total assets $2,750,000 $3,050,000 Liabilities and Partner's Capital Account Balances Partner's Capital Account Balances $2,750,000 $3,050,000 Total liabilities and shareholders' equity $2,750,000 $3,050,000 The partnership has engaged you to prepare the 2019 Form 1065 Include the Schedules K 1 and the Form 1125 A, Cost of Goods Sold Assume the partnership has no debts In answering questions on the tax return, you may make assumptions if the above facts aren't providing you with the information Use Tax ACT to prepare the Form 1065 for ABC LLP If you have a Mac computer, you will have to prepare a manual tax return and use the tax forms in Module 11 Tax Act software is not compatible with Mac's

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ACNT 1347 Form 1065 Practice Tax Return Facts in 2019: ABC LLP, a limited liability partnership, 123 Oak Dr Houston TX 77002 EIN-74-1111111 Date Business

ACNT 1347

Form 1065 Practice Tax Return

Facts in 2019:

ABC LLP, a limited liability partnership, 123 Oak Dr Houston TX 77002
EIN-74-1111111
Date Business Started 1/1/2000
Business Activity: retail sales; Product: Family Clothing; Business code:448140.
The partnership is a cash basis business
Total Assets $3,050,000
Gross Receipts $1,000,000
Cost of Goods Sold $400,000 (assume no beginning and ending inventory and purchases are $400,000)
ABC LLP uses FIFO method for determining the cost of goods sold and the cash method for all other income and expenses.
Guaranteed payment for services in the amount of $200,000 was paid to Bee
Hint:When using Tax Act, open up a Schedule K-1 for each partner.Then, enter guaranteed payment on Bee Jones K-1.The amount will carry over to the Form 1065, Schedule K.
Bee is also the Tax Matters partner.
Salaries and wages paid to employees was $50,000
Office Rent paid for home office was $10,000
Supplies expense totaled $40,000
Partner information is as follows:

PartnerCapitalProfitLoss ResidencySSN Address

Bee Jones40%40%40%TX222-22-2222124 Oak Dr, Hou. TX 77002
John Smith40%40%40%TX333-33-3333125 Oak Dr, Hou. TX 77002
Julie Smart20%20%20%TX444-44-4444126 Oak Dr Hou. TX 77002

All partners materially participate in the day-to-day partnership operations.
All partners use their tax basis as their capital account balances.
The partner's beginning Capital Balances at 1/1/2019 are as follows:

Partner Capital Balance

Bee Jones$1,100,000

John Smith$1,100,000

Julie Smart$550,000

Assets:

1/1/2019

12/31/2019

Cash

$250,000

$550000

Land

$2,500,000

Total assets

$2,750,000

$3,050,000

Liabilities and Partner's Capital Account Balances:

Partner's Capital Account Balances

$2,750,000

$3,050,000

Total liabilities and shareholders' equity

$2,750,000

$3,050,000

The partnership has engaged you to prepare the 2019 Form 1065.Include the Schedules K-1 and the Form 1125-A, Cost of Goods Sold. Assume the partnership has no debts.In answering questions on the tax return, you may make assumptions if the above facts aren't providing you with the information.Use Tax ACT to prepare the Form 1065 for ABC LLP.If you have a Mac computer, you will have to prepare a manual tax return and use the tax forms in Module 11.Tax Act software is not compatible with Mac's.