Question
Apex Corporation was incorporated on January 1, 2017. Here is the income statement for Apex Corp. for 2018. Please complete the Form 1120. I only
Apex Corporation was incorporated on January 1, 2017. Here is the income statement for Apex Corp. for 2018. Please complete the Form 1120. I only need help with the first page of Form 1120.
Revenue from sales | 40,000,000 |
Cost of goods sold | 27,000,000 |
Gross profit | 13,000,000 |
Other income | |
Income from investment in corporate stock | 300,000 |
Interest income | 20,000 |
Capital gains (losses) | -4000 |
Gain or loss from disposition of fixed assets | 3,000 |
Miscellaneous income | 50,000 |
Gross income | 13,369,000 |
Expenses | |
Compensation | 7,500,000 |
Stock option compensation | 200,000 |
Advertising | 1,350,000 |
Repairs and maintenance | 75,000 |
Rent | 22,000 |
Bad debt expense | 41,000 |
Depreciation | 1,400,000 |
Warranty expenses | 70,000 |
Charitable donations | 500,000 |
Meals | 18,000 |
Goodwill impairment | 30,000 |
Organizational expenditures | 44,000 |
Other expenses | 140,000 |
Total expenses | 11,390,000 |
Income before taxes | 1,979,000 |
Provision for income taxes | 720,000 |
Net income before taxes | 1,259,000 |
APEX Corporation Balance Sheet | |||||
December 31, 2018 (in $) | |||||
Assets | |||||
Current Assets | |||||
Cash | 580,000 | ||||
Investment in Bonds | |||||
Accounts Receivable | 470,000 | ||||
Less Allowance for bad debts | - | ||||
Accounts Receivable (net) | 470,000 | ||||
Inventory | 300,000 | ||||
Total Current Assets | 1,350,000 | ||||
Non Current Assets | |||||
Fixed Assets | 21,170,000 | ||||
Less Accum. Depreciation | - | ||||
Fixed Assets (net) | 21,170,000 | ||||
Life Insurance | |||||
Investments in stocks | 10,050,000 | ||||
Goodwill | 120,000 | ||||
Total Noncurrent Assets | 31,340,000 | ||||
Total Assets | 32,690,000 | ||||
Liabilities and Shareholders' Equity | |||||
Current Liabilities | |||||
Accounts Payable | 370,000 | ||||
Reserve for Warranties | 800,000 | ||||
Total Current Liabilities | 1,170,000 | ||||
Non Current Liabilities | |||||
Long -term debt | 19,000,000 | ||||
Deferred compensation | - | ||||
Deferred tax Liabilities | - | ||||
Total Non Current Liabilities | 19,000,000 | ||||
Total Liabilities | 20,170,000 | ||||
Shareholders' Equity | |||||
Common Stack ( $1 par value) | 5,000,000 | ||||
Additional Paid In Capital | 7,520,000 | ||||
retained earnings | - | ||||
Total Shareholders' Equity | 12,520,000 | ||||
Total Liabilities and Shareholders' Equity | 32,690,000 |
Here are some other data:
- The total compensation of officers is $2,500,000; other wages and salaries is $5,000,000.
- Apex actually wrote off $27,000 of its accounts receivable as uncollectible.
- Charitable contributions, $500,000, were all cash contributions.
- Tax depreciation was $1,900,000.
- Apex wrote off $30,000 of goodwill as impaired.
- Apex's dividends received deduction is $130,000
- Apex made $480,000 in estimated tax payments.
- Apex's taxable interest income is $8,000.
- Apex's other deductions are 166,600.
For your final Portfolio Project, submit Form 1120, page 1-5, Schedule L, M-1, and M-2.
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