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Please help to fill the TAX 1120s, and 1065 forms. The details are in the file. fIndividuals Phil Smith and Kate Jones formed P&K Corporation
Please help to fill the TAX 1120s, and 1065 forms. The details are in the file.
\fIndividuals Phil Smith and Kate Jones formed P&K Corporation on March 1, 1994 to provide computer consulting services. The company has been an S corporation since its formation, and the stock ownership is divided as follows: 60 percent to Phil and 40 percent to Kate. The business code and employer identification numbers are 7389 and 24-3897625, respectively. The business office is located at 3010 East Apple Street, Atlanta, Georgia 30304. Phile and Kate live nearby at 1521 South Elm Street and 3315 East Apple Street, respectively. Their social security numbers are 403-165110 for Phil and 518-72-9147 for Kate. The calendar year, cash basis corporation's December 31, 2011 balance sheet and December 31, 2012 trial balance contain the following information: 1. The investment account consists of marketable securities of U.S. corporations and U.S. Treasury Bonds. All of the dividends are considered qualified dividends. 2. Equipment was sold May 12, 2012 for $9,800. It was purchased new on May 1 of the prior year for $10,000 and its basis when sold was $6,300. 3. New equipment was purchased March 1, 2012 with $5,000 cash and a $45,000 three-year note payable. The first note payment is March 1, 2013. (Note: the correct amount of tax depreciation is included in depreciation expense account in the trial balance.) 4. Notes payable are long-term except for $20,000 of the note to be paid next year. 5. Salary expense is composed of salary of $30,000 each to Phil and to Kate and $50,000 to unrelated employees. 6. Health insurance premiums paid were for the unrelated employees. Prepare Form 1120S (including Schedules K, L, and M), and Schedule K-l for Phil. Complete all six pages, including responses to all questions. If any necessary information is missing in the problem, assume a logical answer and record it. Do not prepare Schedule K-l for Kate or other required supplemental forms at this timeStep by Step Solution
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