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ACTG068A HW#4 workpaper Form 1065 Revenues: Sales Revenues Tax Exempt Interest Income Interest Income LT Capital Gain (Loss) ST Capital Gain (Loss) Total revenues Cost of Goods Sold Beginning Inventory Material Purchases Labor Additional Sec. 263 A costs Other Costs: Various Items Book Depreciation Ending Inventory Cost of Goods Sold Other Costs Salaries and wages Taxes and Licenses Charitable Contributions Guaranteed Payments Interest Expense Meals and Entertainment (subject to 50% limitation) Travel Expenses Employee Benefit Programs Books For Year Ended 12/31/XXXX 4,800,000 3,200 1,600 book/tax differences permanent temporary Tax Return 4,800,000 1,600 4,801,600 (3,200) 4,804,800 - - - - - 1,000,000 1,000,000 - 200,000 (100,000) 100,000 - Insurance (including key employee life insurance of $100,000 Legal and Professional Fees Office Expenses Sales and Promotional Expenses Utilities - Warranty Reserve (increase to reserves; not fixed and determinable) Total Other Costs 1,200,000 (100,000) - 1,100,000 Net Income per Books and GAAP-based audited Financial Statements 3,604,800 100,000 - 3,701,600 s/b = Sch. M-1 Line 1 (A) Download and print Instructions for Form 1065 and Schedule K-1 of 1065 - available at the IRS website. Step 1. Step 2. Step 3. Step 4. Step 5. Step 6. Step 7. Input all items of income and expenses missing Identify book/tax differences and input them in a proper column. Identify income and expenses that are "separately reported" items. Input them in col K Input Ordinary income and expenses on page 1 of 1065 - these s/b your numbers in col M COGS - N/A Input "separately stated" items of income and expenses on Sch K - numbers from col K above Be sure to check your checkpoint on line 1 pg. 5 Step 8. Step 9. Step 10 Step 11 Step 12 Input Schedule L - keep in mind schedule L is on GAAP basis - so you have all numbers you need on page E-12 Complete Sch. M-2 - this schedule is on GAAP (book basis) - line 9 s/b = line 21 col (d) of Sch L Fill out Schedule M-1 on pg 5 of 1065 Fill out Schedules B on pg 2-3 of 1065 Prepare Sch K-1 for Ryan Ross Separately Stated items Sch. K 1,600 1,600 - Ordinary Income Items page 1 of 1065 4,800,000 4,800,000 1,000,000 100,000 - - - 1,100,000 check point 1,600 3,700,000 3,701,600 Line 22 pg 1 of 1065 Line 1 pg 5 Analysis of Net Income ou need on page E-12 (Loss) S/B = (A) and Sch. M-1 line 9