I can not figure out why my balance sheet is not in balance, assets are not equal liability + equity.

1. Tax Forms Problem

   On November 1, 2009, Janet Morton and Kim Wong formed Pet Kingdom, Inc., to sell pets and pet supplies. Pertinent information regarding Pet Kingdom is summarized as follows:

   • Pet Kingdoms business address is 1010 Northwest Parkway, Dallas, TX 75225; its telephone number is (214) 555-2211; and its e-mail address is petkingdom@pki.com.

   • The employer identification number is 11-1111112, and the principal business activity code is 453910.

   • Janet and Kim each own 50% of the common stock; Janet is president and Kim is vice president of the company. No other class of stock is authorized.

   • Both Janet and Kim are full-time employees of Pet Kingdom. Janets Social Security number is 123-45-6788, and Kims Social Security number is 123-45-6787.

   • Pet Kingdom is an accrual method, calendar year taxpayer. Inventories are determined using FIFO and the lower of cost or market method. Pet Kingdom uses the straight-line method of depreciation for book purposes and accelerated depreciation (MACRS) for tax purposes.

   • During 2020, the corporation distributed cash dividends of $250,000.

   Pet Kingdoms financial statements for 2020 are shown below.

   *Depreciation for tax purposes is $136,000. You are not provided enough detailed data to complete a Form 4562 (depreciation). If you solve this problem using Intuit ProConnect, enter the amount of depreciation on line 20 of Form 1120.

   During 2020, Pet Kingdom made estimated tax payments of $56,000 each quarter to the IRS. Prepare Pet Kingdoms corporate tax return for tax year 2020 using Form 1120 (and any other appropriate forms and schedules). Suggested software: ProConnect Tax.

my answer in form 1120:

Federal Income Tax Summary: Pet Kingdom, Inc.

	2020
INCOME
Gross receipts less returns/allowance	5,550,000
Cost of goods sold	2,300,000
Gross Profit	3,250,000
Dividends	43,750
Interest	35,000
Total income	3,328,750
DEDUCTIONS
Compensation of officers	525,000
Salaries/wages less employment credits	725,000
Repairs and maintenance	140,000
Rents	109,000
Taxes and licenses	238,000
Interest	216,000
Contributions	78,000
Depreciation	106,000
Advertising	58,000
Employee benefit programs	60,000
Total deductions	2,255,000
TAXABLE INCOME
Taxable income (line 28)	1,073,750
Taxable income	1,073,750
TAX COMPUTATION
Income tax	225,488
Total tax	225,488
PAYMENTS AND CREDITS
Total payments and credits	0
REFUND OR AMOUNT DUE
Overpayment	0
Underpayment penalty	3,798
Tax due	229,286
SCHEDULE L
Beginning Assets	13,714,000
Beginning Liabilities & Equity	13,714,000
Ending Assets	13,802,727
Ending Liabilities & Equity	14,876,477
TAX RATES
Marginal tax rate	21.0%
Effective tax rate	21.0%