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b. improve Rho's benefit of the Melodic Musical Sales, Inc. is located at 5500 Fourth Avenue, City, ST 98765. The corporation uses the calendar
b. improve Rho's benefit of the Melodic Musical Sales, Inc. is located at 5500 Fourth Avenue, City, ST 98765. The corporation uses the calendar year and accrual basis for both book and tax purposes, REIN) of XX-2023021. The company incorporated on December 31, 2017, and began tis engaged in the sale of musical instruments with an employer identification number TAX FORM/RETURN PREPARATION PROBLEMS January business on January 2, 2018. Table C:3-3 contains balance sheet information at 1, 2021, and December 31, 2021. Table C:3-4 presents an unaudited GAAP income state- ment for 2021. These schedules are presented on a book basis. Other information follows the tables. TABLE C:3-3 nomging DAM Melodic Musical Sales, Inc.-Book Balance Sheet Information January 1, 2021 Debit December 31, 2021 Credit Debit Credit Account Cash $ 516,774 $ 815,494 Accounts receivable 400,000 500,000 Allowance for doubtful accounts 20,000 $ 25,000 Inventory 2,500,000 3,500,000 Investment in corporate stock 260,000 50,000 Investment in municipal bonds 30,000 30,000 Cash surrender value of insurance policy 60,000 80,000 Land 200,000 200,000 Buildings 2,000,000 2,000,000 Accumulated depreciation-Buildings 100,000 140,000 Equipment 750,000 1,100,000 Accumulated depreciation-Equipment 187,500 205,000 Trucks 100,000 100,000 Accumulated depreciation-Trucks Accounts payable 30,000 50,000 Notes payable (short-term) 300,000 270,000 Accrued payroll taxes Accrued state income taxes Accrued federal income taxes Bonds payable (long-term) Net deferred tax liability Capital stock-Common Retained earnings-Unappropriated Totals 800,000 640,000 14,880 18,600 YaBTARTZ XA2,500 4,500 7,500 77,361 1,800,000 600,000 57,394 167,593 1,500,000 1,500,000 2,000,000 4,674,440 $6,816,774 $6,816,774 $8,375,494 $8,375,494 000,022
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