Barbara Barbie Roberts and Ken Carson started a personal shopping company, Barbies Closet. It operates on a calendar year end. It began business on January 1, 2021. Barbara needs you to do the following:

• Prepare the 2021 Partnership Tax Return (Be sure to attach any schedules required.) SC return is not required.
  • Barbies Closet o Fed ID # 57-5555555
  • o Address: 1000 Mattel Blvd Charleston, SC 29406
  • o Cash basis of accounting is used
  • o Capital and Profit/Loss Ownership Barbara Roberts 99%, Ken Carson 1%
  • o Barbara contributed $29,700 to the partnership at formation and took a distribution of $17,500 on December 31st. Ken contributed 300 to the partnership at formation and did not take a distribution.
  • Barbara Roberts o Social Security #: 555-55-5550
  • o Address: 111 Malibu Blvd. Charleston, SC 29406
  • Ken Carson o Social Security #: 555-55-5551
  • o Address: 112 Malibu Blvd. Charleston, SC 29406

Income: Service Revenue 250,000 Dividend Income 1,000 * Interest Income 200 Tax Exempt Interest 100 Total Income 251,300 Expenses: Advertising Expense 2,500 Charitable Contributions 500 Guaranteed Payments - Barbie 90,000 Depreciation Expense 20,000 ** Interest Expense 1,500 Insurance Expense 2,500 Office Expense 500 Professional Services 500 Meals and Entertainment 500 Supplies Expense 4,000 Payroll Taxes - Other 5,000 Rent Expense 24,000 Salaries and Wages 60,000 Utilities 4,000 Total Expenses 215,500 Net Income 35,800 * Dividends were received from a less than 20% owned corporation. ** Depreciation for tax purposes is 25,000. Form 4562 not required. Distributions from Barbie's Closet = 17,500

Barbie's Closet Balance Sheet December 31, 2021 Assets Liabilities and Equity Cash 13,100 Long Term Liabilities 55,000 Supplies 200 Owner's Capital, Barbara 47,642 Investments 10,000 Owner's Capital, Ken 658 Property Plant and Equipment 100,000 Total Liabilities and Equity 103,300 Accumulated Depreciation -20,000 Total Assets 103,300

Please help with completing Forms:

1065

1065 K-1 for both partners

1065 B-1

QBI partnership info

Financial statement