John Parsons (123-45-6871) and George Smith (123-45-6782) are 70% and 30% owners, respectively, of Premium, Inc. (11-1111111), a candy company located at 1005 16^th 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. Premium's book income for the year was $704,574

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		(150,000)
Repairs		(206,106)
Depreciation expenses		(15,254)
Interest expenses		(35,222)
Rent expenses (operating)		(40,000)
Taxes		(65,101)
Charitable contribution (Cash)		(20,000)
Advertising expenses		(20,000)
Payroll penalties		(15,000)
Other deductions		(59,899)
Book income		$704,574

A 2018 comparative balance sheet appears below.

	1-Jan	31-Dec
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 liabilities and capita	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.

Cash distributions to shareholders $100,000

Beginning balance, accumulated adjusted account $111,148

Using the preceding information, prepare a complete Form 1120s (Links to an external site.) and Schedule K-1s for John Parsons and George Smith, both of whom live at 5607 20^th Street, Cut and Shoot, TX 77303.