John Parsons (123-45-6781) and George Smith (123-45-6782) are 70% and 30% owners, respectively, of Premium, Inc. (11-1111111), a candy company located at 1005 16th Street, Cut and Shoot, TX 77303. Premium's S election was made on January 15, 2011, its date of incorporation. The following information was taken from the company's 2018 income statement.

Interest income$100,000Gross sales receipts2,410,000Beginning inventory9,607Direct labor(203,102)Direct materials purchased(278,143)Direct other costs(249,356)Ending inventory3,467Salaries and wages(442,103)Officers' salaries ($75,000 each to Parsons and Smith)(150,000)Repairs(206,106)Depreciation expense, tax and book(15,254)Interest expense(35,222)Rent expense (operating)(40,000)Taxes(65,101)Charitable contributions (cash)(20,000)Advertising expenses(20,000)Payroll penalties(15,000)Other deductions(59,899)Book income704,574

A comparative balance sheet appears below.

Cash$ 47,840$ ?

Accounts receivable93,100123,104

Inventories9,6073,467

Prepaid expenses8,33317,582

Building and equipment138,203185,348

Accumulated depreciation(84,235)(?)

Land2,0002,000

Total assets$214,848$844,422

Accounts payable$ 42,500$ 72,300

Notes payable (less than 1 year)4,5002,100

Notes payable (more than 1 year)26,70024,300

Capital stock 30,000 30,000 Retained earnings 111,148?

Total liabilities and capital$214,848$844,422

Premium's accounting firm provides the following additional information.

Distributions to shareholders$100,000

Beginning Balance, Accumulated adjustments account$111,148

Using the preceding information, how to prepare a Form 1120S and Schedule K-1s for John Parsons and George Smith, 5607 20th Street, Cut and Shoot, TX 77303?