Content Requirements

Please prepare Form $1120$ for the calendar year $2022$ using the attached financial statements for $2022$ & $2021.$ You will need the $2022$ & $2021$ financial statements in order to prepare Schedule L $($Balance Sheet$)$ on the $2022$ Form $1120.$

Other Pertinent Information:

$1.$ Company Name $$ RIT Class of $2024,$ Inc.

$2.$ The address is: $123$ Main Street Rochester NY $14611$

$3.$ Date incorporated is $010164$

$4.$ Employer Identification Number $161249900$

$5.$ Leave Question A blank the top left corner of Form $1120(2022)$

$6.$ Accrual Basis Accounting

$7.$ Business is a consulting business providing non$$CPA accounting services

$8.2021$ overpayment of federal corporate tax applied to $2022$ amounted to $$50,000$

$9.102$ shareholders, no one single entity owns over $1\%$ of the common stock

$10.$ The company was not required to issue Forms $1099$

$11.$ Answer $$no$$ to any other yes$/$no question on Schedule K

$12.$ $$36,224$ of assets were acquired in $2022$ and bonus depreciation was claimed for tax purposes. All assets held at the beginning of the year were fully depreciated for tax purposes in prior years.

$13.$ Complete Form $1120(2022)6$ pages and Form $4562$

$14.$ Attach a schedule for the $$Other Deductions$$ category if used

$15.$ Compute the corporate tax liability and refund any overpayment

The purpose of this project is to introduce you to preparing a simple Form $1120$ and validating your knowledge of the previous tax material you learned that relates to deductibility of expenses and reporting of gross income.

Technical Requirements

$$ Prepare a complete Form $1120$ as outlined above.

Rubric for Grading

To do well on this paper, you need to:

$$ Prepare the tax return and all schedules properly.

$$ Compute the tax liability properly.

$$ Submit one $(1)$ single PDF file in the myCourses Dropbox for this specific assignment before the due date and time at which time the Dropbox will close.

RIT Class of $2024$

Balance Sheet

As of December $31,2022$

ASSETS

Current Assets Checking$/$Savings

Dec $31,\text{'}22$ Dec $31,\text{'}21$

$11000$ Cash $-$ Checking Acco... $184,710\mathrm{.}00108,834\mathrm{.}00$

Total Checking$/$Savings $184,710\mathrm{.}00108,834\mathrm{.}00$

Other Current Assets

$14000$ Merchandise Inventory

$10,000\mathrm{.}00$

$0\mathrm{.}00$

$13000$ Notes Receivable $30,000\mathrm{.}0040,000\mathrm{.}00$

$12800$ Employee Advances $700\mathrm{.}000\mathrm{.}00$

$13500$ Income Tax Receivable $0\mathrm{.}0050,000\mathrm{.}00$

Total Other Current Assets $40,700\mathrm{.}0090,000\mathrm{.}00$

Total Current Assets

$225,410\mathrm{.}00$

$198,834\mathrm{.}00$

Fixed Assets

$15000$ Furniture and Equipment

$1,200\mathrm{.}00$

$1,200\mathrm{.}00$

$15200$ Buildings and Improve... $100,000\mathrm{.}0063,776\mathrm{.}00$

$16400$ Vehicles $12,000\mathrm{.}0012,000\mathrm{.}00$

$17000$ Accumulated Depreciati... $-64,800\mathrm{.}00-39,800\mathrm{.}00$

Total Fixed Assets $48,400\mathrm{.}0037,176.\mathrm{.}00$

TOTAL ASSETS

$273,810\mathrm{.}00$

$236,010\mathrm{.}00$

Balance Sheet

As of December $31,2022$

LIABILITIES & EQUITY

Liabilities

Current Liabilities

Other Current Liabilities

Dec $31,\text{'}22$ Dec $31,\text{'}21$

$23000$ Notes Payable $20,000\mathrm{.}0075,000\mathrm{.}00$

$21000$ Accrued Expenses $27,666\mathrm{.}0014,666\mathrm{.}00$

Total Other Current Liabilities $47,666\mathrm{.}0089,666\mathrm{.}00$

Total Current Liabilities $47,666\mathrm{.}0089,666\mathrm{.}00$

Total Liabilities

$47,666\mathrm{.}00$

$89,666\mathrm{.}00$

Equity

$32000$ Retained Earnings

$121,344\mathrm{.}00$

$106,544\mathrm{.}00$

$30200$ Dividends Paid $-75,000\mathrm{.}000\mathrm{.}00$

$30100$ Capital Stock $225,000\mathrm{.}0025,000\mathrm{.}00$

Net Income $-45,200\mathrm{.}0014,800\mathrm{.}00$

Total Equity $226,144\mathrm{.}00146,344\mathrm{.}00$

TOTAL LIABILITIES & EQUITY

$273,810\mathrm{.}00$

$236,010\mathrm{.}00$

Pro$$t and Loss

January through December $2022$

Ordinary Income$/$Expense Income

Jan $-$ Dec $\text{'}22$ Jan $-$ Dec $\text{'}21$

$43000$ Sales $650,000\mathrm{.}00850,000\mathrm{.}00$

Total Income $650,000\mathrm{.}00850,000\mathrm{.}00$

Cost of Goods Sold

$50500$ Cost of Goods Sold

$280,000\mathrm{.}00$

$420,000\mathrm{.}00$

Total COGS $280,000\mathrm{.}00420,000\mathrm{.}00$

Gross Pro$$t

$370,000\mathrm{.}00$

$430,000\mathrm{.}00$

Expense

$63000$ Federal Corporate Incom...

$100,000\mathrm{.}00$

$100,000\mathrm{.}00$

$63300$ Insurance Expense $7,000\mathrm{.}007,000\mathrm{.}00$

$65600$ Payroll Expenses $250,000\mathrm{.}00250,000\mathrm{.}00$

$64300$ Meals and Entertainment $6,000\mathrm{.}006,000\mathrm{.}00$

$63500$ Janitorial Expense $12,000\mathrm{.}0012,000\mathrm{.}00$

$62400$ Depreciation Expense $25,000\mathrm{.}0025,000\mathrm{.}00$

$67200$ Repairs and Maintenance $2,200\mathrm{.}002,200\mathrm{.}00$

$68600$ Utilities $8,000\mathrm{.}008,000\mathrm{.}00$

$67100$ Rent Expense $5,000\mathrm{.}005,000\mathrm{.}00$

Total Expense $415,200\mathrm{.}00415,200\mathrm{.}00$

Net Ordinary Income

$-45,200\mathrm{.}00$

$14,800\mathrm{.}00$

Net Income

$-45,200\mathrm{.}00$

$14,800\mathrm{.}00$