John Parsons [123-45-6781] and George Smith [123-45-6782] 70% and 30% owners, respectively, of Premium Inc. [11-111111] a candy company located at 1005 16th Street, San Diego, CA 92101, Premiums S election was made on January 15, 2009, its date of incorporation. The following information was taken from the companys 2016 income statement. Premium Inc 2017

Income Statement Items

Interest income 100,000

Gross receipts 2,410,000

Beginning inventory 9,607

Direct labor (203,102)

Direct materials purchased (278,143)

Direct other costs (249,356)

Ending inventory 3,467

Salaries and wages (442,103)

Officers salaries [$75,000 each] (150,000)

Repairs (206,106)

Depreciation expenses, tax and book (15,254)

Interest expense (35,222)

Rent expense (40,000) Taxes (65,101)

Charitable contributions (20,000)

Advertising expenses (20,000)

Payroll penalties (15,000)

Other deductions (59,899)

Book income 704,574

Premium provides the following additional information

Distributions to shareholders $100,000

Beginning balance, Accumulated adjustments account $111,148

Using the preceding information prepare a complete Form 1120S and Schedule K-1s for John Parsons 5607 20th Street, San Diego, CA 92101 and George Smith 8714 Grand Avenue, San Diego, CA 92102. You do not need to complete the Form 4562. If any information is missing make realistic assumptions.

Can you please help me fill out the California 100s !

A comparative balance sheet appears below: Premium Inc 12/31/2016 12/31/2017 Cash Accounts receivable Inventories Prepaid expenses Building and equipment Accumulated depreciation Land $47,840 93,100 9,607 8,333 138,203 (84,235) 2,000 $612,410 123,104 3,467 17,582 185,348 (99,489) 2,000 Total Assets $214,848 $844,422 42,500 4,500 72,300 2,100 Accounts pavable Notes payable [less than 1 year] Notes payable [more than 1 year] Capital stock Retained earnings 26,700 30,000 111,148 24,300 30,000 29 Total Liabilities and Capital $214,848 $844,422