I'm going to have to complete a Form 1120, and it will be based on a similar situation to the attached document. I need to know how to fill pages 1-5 out on Form 1120, so I'm hoping someone can show me how to complete it based on the attached document, which will help me do it on my own when I need to. Thank you.

Acme, Inc., 12345 Coyote Avenue, Denver Colorado, is a corporation (EIN 00-1234567) formed on January 1, 2010. It uses tax/cash basis accounting, did not pay dividends in excess of earnings and profits, has no foreign shareholders, is not publicly traded, and has no NOL carrybacks. John Doe (SSN 123-45-6789), 5555 Red Street, Boise Idaho, is a 60% shareholder. Jane Smart (SSN 246-81-0121), 2468 Condo Lane, Los Angeles, CA, is a 40% shareholder. John received a dividend of $65,000, and Jane received a dividend of $45,000, which are in addition to their salaries. Assets Cash Investments Office equipment Accumulated Depreciation (Equipment) Building Accumulated Depreciation (Building) Total Assets Liabilities and equity Notes payable Common stock Retained Earnings Total liabilities and equity Balance Sheet 12/31/2014 12/31/2015 38,702 254,568 228,500 (158,500) 497,400 (36,411) 824,259 47,609 164,772 312,456 (167,822) 497,400 (47,344) 807,011 357,692 12,000 454,567 824,259 341,247 12,000 453,764 801,338 Income Statement Revenue Consulting Income Interest Income Rental Income Dividend income (Qualified) Long term capital losses Total revenue Expenses Salaries and Wages (employees) Officers' salaries Doe Smart Depreciation Interest Expense Taxes and licenses Utilities Travel Meals and Entertainment (100%) Auto Insurance (health) Accounting and legal Repairs Charitable Contributions Payroll penalties Total Expenses Net income 862,458 4,467 8,000 8,748 (8,450) 875,223 253,000 228,000 155,000 22,701 22,455 26,443 16,400 12,400 12,709 19,200 8,000 6,780 3,875 12,800 810 800,573 74,650 I understand most of it, but I just had a couple of questions. I saw that you corrected an error in the amount of accumulated depreciation, but can you please explain why retained earnings for 2015 was 419,217 instead of 453,764 like it says on the balance sheet? I'm also confused about all of the amounts on schedule M1. If you could just explain those two things, then I can accept the answer and rate with max stars. Explanation : I am assuming that you are familiar with Accounting and Balance sheets, Income statement etc. Ending Balance of Retained Earnings (RE) = Opening Balance of RE + Net Income - Dividends So Ending RE 2015 = 454,567 + 74,650 - (65000+45000) = 419,217. Schedule M1: 1. Net income : Given 3. Excss of capital loss : Given in income stt 5. Dep : given in income stt 5b. Charitable cont 8a. Depreciation : Actual Dep (20,000+12,445) = 32,445 Dep as per Income Stt : 22,701 So Diff in Dep = 32,44522,701 = 9744 Office eqpt : 7Yr MACRS: Assume in service in 1/1/2011. So Y4 Dep = 8.75%*228,500 = 20,000 (Roundoff) Building : SLN 40Yrs. So Yearly Dep = 497,400/40 = 12,445 (roundoff) Office Eqpt : We don't know when the eqpt was purchased but it is depreciated using 7 Yrs MACRS as it gives approx. Accum Dep of 158,500 Idea here is to get all the figures by analyzing the Income Stt and balance sheet in absence of detailed info. Acme, Inc., 12345 Coyote Avenue, Denver Colorado, is a corporation (EIN 00-1234567) formed on January 1, 2010. It uses tax/cash basis accounting, did not pay dividends in excess of earnings and profits, has no foreign shareholders, is not publicly traded, and has no NOL carrybacks. John Doe (SSN 123-45-6789), 5555 Red Street, Boise Idaho, is a 60% shareholder. Jane Smart (SSN 246-81-0121), 2468 Condo Lane, Los Angeles, CA, is a 40% shareholder. John received a dividend of $65,000, and Jane received a dividend of $45,000, which are in addition to their salaries. Assets Cash Investments Office equipment Accumulated Depreciation (Equipment) Building Accumulated Depreciation (Building) Total Assets Liabilities and equity Notes payable Common stock Retained Earnings Total liabilities and equity Balance Sheet 12/31/2014 12/31/2015 38,702 254,568 228,500 (158,500) 497,400 (36,411) 824,259 47,609 164,772 312,456 (167,822) 497,400 (47,344) 807,011 357,692 12,000 454,567 824,259 341,247 12,000 453,764 801,338 Income Statement Revenue Consulting Income 862,458 Interest Income Rental Income Dividend income (Qualified) Long term capital losses Total revenue Expenses Salaries and Wages (employees) Officers' salaries Doe Smart Depreciation Interest Expense Taxes and licenses Utilities Travel Meals and Entertainment (100%) Auto Insurance (health) Accounting and legal Repairs Charitable Contributions Payroll penalties Total Expenses Net income 4,467 8,000 8,748 (8,450) 875,223 253,000 228,000 155,000 22,701 22,455 26,443 16,400 12,400 12,709 19,200 8,000 6,780 3,875 12,800 810 800,573 74,650 I understand most of it, but I just had a couple of questions. I saw that you corrected an error in the amount of accumulated depreciation, but can you please explain why retained earnings for 2015 was 419,217 instead of 453,764 like it says on the balance sheet? I'm also confused about all of the amounts on schedule M1. If you could just explain those two things, then I can accept the answer and rate with max stars. Explanation : I am assuming that you are familiar with Accounting and Balance sheets, Income statement etc. Ending Balance of Retained Earnings (RE) = Opening Balance of RE + Net Income - Dividends So Ending RE 2015 = 454,567 + 74,650 - (65000+45000) = 419,217. Schedule M1: 1. Net income : Given 3. Excss of capital loss : Given in income stt 5. Dep : given in income stt 5b. Charitable cont 8a. Depreciation : Actual Dep (20,000+12,445) = 32,445 Dep as per Income Stt : 22,701 So Diff in Dep = 32,44522,701 = 9744 Office eqpt : 7Yr MACRS: Assume in service in 1/1/2011. So Y4 Dep = 8.75%*228,500 = 20,000 (Roundoff) Building : SLN 40Yrs. So Yearly Dep = 497,400/40 = 12,445 (roundoff) Office Eqpt : We don't know when the eqpt was purchased but it is depreciated using 7 Yrs MACRS as it gives approx. Accum Dep of 158,500 Idea here is to get all the figures by analyzing the Income Stt and balance sheet in absence of detailed info. Acme, Inc., 12345 Coyote Avenue, Denver Colorado, is a corporation (EIN 00-1234567) formed on January 1, 2010. It uses tax/cash basis accounting, did not pay dividends in excess of earnings and profits, has no foreign shareholders, is not publicly traded, and has no NOL carrybacks. John Doe (SSN 123-45-6789), 5555 Red Street, Boise Idaho, is a 60% shareholder. Jane Smart (SSN 246-81-0121), 2468 Condo Lane, Los Angeles, CA, is a 40% shareholder. John received a dividend of $65,000, and Jane received a dividend of $45,000, which are in addition to their salaries. Assets Cash Investments Office equipment Accumulated Depreciation (Equipment) Building Accumulated Depreciation (Building) Total Assets Liabilities and equity Notes payable Common stock Retained Earnings Total liabilities and equity Balance Sheet 12/31/2014 12/31/2015 38,702 254,568 228,500 (158,500) 497,400 (36,411) 824,259 47,609 164,772 312,456 (167,822) 497,400 (47,344) 807,011 357,692 12,000 454,567 824,259 341,247 12,000 453,764 801,338 Income Statement Revenue Consulting Income 862,458 Interest Income Rental Income Dividend income (Qualified) Long term capital losses Total revenue Expenses Salaries and Wages (employees) Officers' salaries Doe Smart Depreciation Interest Expense Taxes and licenses Utilities Travel Meals and Entertainment (100%) Auto Insurance (health) Accounting and legal Repairs Charitable Contributions Payroll penalties Total Expenses Net income 4,467 8,000 8,748 (8,450) 875,223 253,000 228,000 155,000 22,701 22,455 26,443 16,400 12,400 12,709 19,200 8,000 6,780 3,875 12,800 810 800,573 74,650