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could you teach me how to make the trial balance using the M-1 account for adjustments please? PART 2 Corporations 2. On February 12, 2005,

could you teach me how to make the trial balance using the M-1 account for adjustments please? image text in transcribed
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PART 2 Corporations 2. On February 12, 2005, Nancy Trout and Deloves Lake formed Kingfisher Corporation to connect sell fishing tackle. Pertinent information regarding Kingfisher is summarized as follows . Kingfisher's business address is 1717 Main Street, Ely, MN 55731; its telephone The employer identification number is 11-1111113, and the principal business activity code is 451110. Nancy owns 50% of the common stock and is president of the company, and Delores owns 50% of the common stock and is vice president of the company No other class of stock is authorized . Both Nancy and Delores are full-time employees of Kingfisher Nancy's Social Secu- rity number is 123-45-6788, and Delores's Social Security number is 123-456787 Kingfisher is an accrual method, calendar year taxpayer. Inventories are deter- mined using FIFO and the lower of cost or market method. Kingfisher uses the straight-line method of deprecation for book purposes and accelerated deprecia- tion (MACRS) for tax purposes . During 2019, the corporation distributed cash dividends of $80,000. Kingfisher's financial statements for 2019 are shown below and on the next page. connect Income Statement Income Gross sales $2.408,000 Sales returns and allowances (80.000) Net sales $2.328.000 Cost of goods sold 1920,000 Gross profit 51,400,000 Dividends received from stock investments in less-than-20%-owned U.S. corporations 12.000 Interest income State bonds $ 14,000 Certificates of deposit 10,000 24,000 $1,444,000 Total income Expenses Salaries--officers: $160,000 Nancy Trout Delores Lake 160,000 $320,000 Salaries-derical and sales 290,000 85,000 Taxes (state, local and payroll 56,000 Repairs and maintenance Interest expense: $ 12,000 Business loans 8,000 20,000 Loan to purchase state bonds 6,000 Advertising 68,000 Rental expense 40,000 Depreciation 15,000 Charitable contributions Employee benefit programs Premiums on term life insurance policies on lives of Nancy Trout and Delores Lake; Kingfisher is the 16.000 designated beneficiary 1940,000) Total expenses $ 504,000 Net Income before taxes (106,680) Federal income tax $ 397,320 Net Income per books "You are not provided enough detailed information to complete a form 4563 depreciation. If you solve this problem using intuit ProConnect, enter the amount of deprecation online 20 of Form 1120 not ded. notged. 24.000 CHAPTER 3 Corporations: Introduction and Operating Rules Balance Sheet Assets Cash Trade notes and accounts receivable Inventories State bonds Federal income tax refund Certificates of deposit Stock Investments Building and other depreciable assets Accumulated depreciation Land Other assets Total assets January 1, 2019 $ 380,000 308,400 900,000 160,000 -0- 140,000 300,000 240,000 (88,800) 20,000 3,600 $2,363,200 December 31, 2019 $ 337,300 480,280 1,012.000 160,000 1,320 140,000 300,000 240,000 (128,800) 20,000 2,000 $2,564,100 December 31, 2019 Liabilities and Equity Accounts payable Other current liabilities Mortgages Capital stock Retained earnings Total liabilities and equity January 1, 2019 $ 300,000 80,300 210,000 500,000 1,272,900 $2,363,200 $ 233,880 40,000 200,000 500,000 1,590,220 $2,564,100 During 2019, Kingfisher made estimated tax payments of $27,000 each quarter to the IRS. Prepare a Form 1120 for Kingfisher for tax year 2019. Suggested software: ProConnect Tax Online

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