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, 2010, its date of incorporation. The following information was taken from the company's 2016 income statement.

Interest income $ 100,000

Gross sales 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 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 income 704,574

A comparative balance sheet appears below.

January 1, 2016 December 31, 2016

Cash $ 47,840 $ ?

Accounts receivable 93,100 123,104

Inventories 9,607 3,467

Prepaid expenses 8,333 17,582

Building and equipment 138,203 185,348

Accumulated depreciation (84,235) (?)

Land 2,000 2,000

Total assets $214,848 $844,422

Accounts payable $ 42,500 $ 72,300

Notes payable (less than 1 year) 4,500 2,100

Notes payable (more than 1 year) 26,700 24,300

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

Required:

Prepare a complete Form 1120S and Schedule K-1s for John Parsons and George Smith, 5607 20th Street, Cut and Shoot, TX 77303.

If an amount box does not require an entry or the answer is zero, enter "0".

Enter all amounts as positive numbers, unless otherwise instructed.

If required, round amounts to the nearest dollar.

Make realistic assumptions about any missing data.