I'm having a hard time figuring out the adjusted trial balance and the beginning balance sheet in order to do the tax return for this project.

Practice, LLC (cash/tax basis) The bookkeeper, who is not an educated accountant provided you with the following unadjusted information. For Year Ended December 31, 2015: Gross Income $491,000.00 Cost of Goods Sold Project Expenses $135,000.00 Expenses: Working Owner/Officer Compensation Other Salary Office Expense Interest Expense Donations Meals & Entertainment (100%) Liability Insurance Health Insurance Health Insurance - Officer/owner Penalties and fines Taxes: Payroll, Tangible, State MACRS Depreciation Expense New equipment purchased 3/1/15 Auto Expense ( shown at 100%) Amortization Expense $100,000.00 $120,000.00 $21661.00 $2600.00 $5,000.00 $8600.00 $6000.00 $22,000.00 $8,500.00 $5,500.00 $31,000.00 $4685.00 $8100.00 $3,400.00 $80.00 for assets purchased in prior years Sally Rice - 85% business use substantiated Other Income: Dividend Income ( Microsoft Stock) Interest Income $400.00 $100.00 Practice C Corp, Inc. Book & Tax Trial Balance Cash Basis at 12/31/2015: Cash and Money Market Equipment Accumulated Depreciation $35627.00 $75,000.00 ($63286.) $11714.00 Loan Costs (15 year loan) Accumulated Amortization $1,200.00 (267.00) $933.00 Deposits - Utilities Investment - Microsoft at cost Note Payable - Suntrust all LT (interest only since inception of business) Common Stock Paid-in Capital Retained Earnings at 12/31/2014 $2000.00 $20000.00 $25,000.00 $4,000.00 $21,000.00 $10,900.00 Additional Information: 1. On 12/31/2014, Form 1120 taxes paid = $7,000.00 2. The $5500.00 in Estimated 2015 tax payments made as follows: 3/15/2015 $250.00 06/15/2015 $1,750.00 09/15/2015 $1,750.00 12/15/2015 $1,750.00 3. Taxpayer desires to minimize taxes and apply any overpayment to next year 4. Schedule L - assume beg cash $21488. 5. Complete schedule M-1 and M-2 6. New assets purchased are not expensed despite the bookkeepers entry and therefore must be capitalized first and then depreciated using section 179 expense election. If you do not know what this means. Please reread your principles of accounting text chapter on fixed assets. 7. Personal Use of auto expense is 15% 8. If you do not know the definition of ordinary and qualified dividends, please see Individual tax text or find same definitions on IRS website. 9. Employer sponsored health plan is 100% ACA compliant, premiums paid by company. NOTES: Business Name: Practice, LLC Business Address: 800 Pear Street, Tampa, FL 33689 Employer Identification Number: 59-3764333 Business: home staging Business started: September 1, 2012 Elected to amortize loan costs over 180 months life of loan Owners: (1) Sally Rice 300 Apple Street Tampa, FL 33788 - 267-55-8818 - 80% owner - works in business 90% of time (2) Kelly Small 500 Orange Street Tampa, FL 33789 - 389-44-7789 - 20% owner - does not work in business - Personally guaranteed Suntrust note You must prepare an adjusted trial balance Until this is accurate do not attempt to prepare the tax return. Forms and instructions available at www.irsgov. You must create a beginning Balance sheet. You must adjust for items that must be capitalized. Do not accrue for anything, this is cash basis taxpayer as are most small businesses. Assume this is an Equipment rental operation. Please manually prepare a return assuming an LLC was formed 09/01/2012 using the default tax election. You will need 2015 forms 1065, 2K-1's 4562, and form 8825 (8825 for use as template only, you must manually prepare a rental schedule), and manually prepared supporting schedules - use forms and instructions from www.irs.gov. Read the form line instructions do not use page one of the 1065 or file the form 8825 - this is a rental equipment business not rental real estate. NO numbers should appear on page one of the 1065. Name of company will change to Practice, LLC. Assume year end of 12/31/2015. Practice, LLC (cash/tax basis) The bookkeeper, who is not an educated accountant provided you with the following unadjusted information. For Year Ended December 31, 2015: Gross Income $491,000.00 Cost of Goods Sold Project Expenses $135,000.00 Expenses: Working Owner/Officer Compensation Other Salary Office Expense Interest Expense Donations Meals & Entertainment (100%) Liability Insurance Health Insurance Health Insurance - Officer/owner Penalties and fines Taxes: Payroll, Tangible, State MACRS Depreciation Expense New equipment purchased 3/1/15 Auto Expense ( shown at 100%) Amortization Expense $100,000.00 $120,000.00 $21661.00 $2600.00 $5,000.00 $8600.00 $6000.00 $22,000.00 $8,500.00 $5,500.00 $31,000.00 $4685.00 $8100.00 $3,400.00 $80.00 for assets purchased in prior years Sally Rice - 85% business use substantiated Other Income: Dividend Income ( Microsoft Stock) Interest Income $400.00 $100.00 Practice C Corp, Inc. Book & Tax Trial Balance Cash Basis at 12/31/2015: Cash and Money Market Equipment Accumulated Depreciation $35627.00 $75,000.00 ($63286.) $11714.00 Loan Costs (15 year loan) Accumulated Amortization $1,200.00 (267.00) $933.00 Deposits - Utilities Investment - Microsoft at cost Note Payable - Suntrust all LT (interest only since inception of business) Common Stock Paid-in Capital Retained Earnings at 12/31/2014 $2000.00 $20000.00 $25,000.00 $4,000.00 $21,000.00 $10,900.00 Additional Information: 1. On 12/31/2014, Form 1120 taxes paid = $7,000.00 2. The $5500.00 in Estimated 2015 tax payments made as follows: 3/15/2015 $250.00 06/15/2015 $1,750.00 09/15/2015 $1,750.00 12/15/2015 $1,750.00 3. Taxpayer desires to minimize taxes and apply any overpayment to next year 4. Schedule L - assume beg cash $21488. 5. Complete schedule M-1 and M-2 6. New assets purchased are not expensed despite the bookkeepers entry and therefore must be capitalized first and then depreciated using section 179 expense election. If you do not know what this means. Please reread your principles of accounting text chapter on fixed assets. 7. Personal Use of auto expense is 15% 8. If you do not know the definition of ordinary and qualified dividends, please see Individual tax text or find same definitions on IRS website. 9. Employer sponsored health plan is 100% ACA compliant, premiums paid by company. NOTES: Business Name: Practice, LLC Business Address: 800 Pear Street, Tampa, FL 33689 Employer Identification Number: 59-3764333 Business: home staging Business started: September 1, 2012 Elected to amortize loan costs over 180 months life of loan Owners: (1) Sally Rice 300 Apple Street Tampa, FL 33788 - 267-55-8818 - 80% owner - works in business 90% of time (2) Kelly Small 500 Orange Street Tampa, FL 33789 - 389-44-7789 - 20% owner - does not work in business - Personally guaranteed Suntrust note You must prepare an adjusted trial balance Until this is accurate do not attempt to prepare the tax return. Forms and instructions available at www.irsgov. You must create a beginning Balance sheet. You must adjust for items that must be capitalized. Do not accrue for anything, this is cash basis taxpayer as are most small businesses. Assume this is an Equipment rental operation. Please manually prepare a return assuming an LLC was formed 09/01/2012 using the default tax election. You will need 2015 forms 1065, 2K-1's 4562, and form 8825 (8825 for use as template only, you must manually prepare a rental schedule), and manually prepared supporting schedules - use forms and instructions from www.irs.gov. Read the form line instructions do not use page one of the 1065 or file the form 8825 - this is a rental equipment business not rental real estate. NO numbers should appear on page one of the 1065. Name of company will change to Practice, LLC. Assume year end of 12/31/2015. Nothing should appear on page one form 1065 lines 1-22. A partnership return with rental activity is based on Sch K - read the lines and instructions. Health insurance paid by a partnership or S corporation for an owner with greater than 2% ownership is NOT deductible to the Partnership but is deductible to the partner on his/her personal tax return. So this is a separately stated item on K and K-1 specially allocated to the recipient partner included in the guaranteed payment. However Guaranteed payment is deductible to the partnership. Do not attempt your Sck K-1's until your Sch K is perfect. DO NOT ALLOCATE earned income from the working partner to the non working partner - we are not declared socialists yet in this country! Part L on K-1 current year increase is line K-1 lines: 3+5+6a - 12-13-18 = current year increase or decrease other lines if they had numbers would be included. It's all items of book income or loss for the partnership. Send me your email questions - I want you all to get all the points on this project. Check Figure for LLC Project: Rice K-1 Sch L End capital $ 34519