Please, make the final file in PDF form, not as Excel!
You are required to complete the final project in Accounting. You are required to complete the Form 1065 (ALL schedules and attachments), Janets K-1, and Kims K-1. Even though the M-3 is required, complete the M-1 instead of the M-3.
Upload Form 1065 with necessary attachments and Schedule K-1s for both partners, Form 1125-A and Schedule B1 are also required to upload.
Tax Return Problem On November 1, 2005, Janet Morton and Kim Wong formed Pet Kingdom, General Partnership, to sell pets and pet supplies. Pertinent information regarding Pet Kingdom is summarized as follows: Pet Kingdom's business address is 1010 Northwest Parkway, Dallas, TX 75225; its telephone number is (214) 555-2211; and its e-mail address is petkingdom@pki.com. The employer identification number is 11-1111111, and the principal business activity code is 453910. Janet and Kim each own 50% of the partnership, Janet is president and the tax matters partner. Kim is vice - president of the company. Both Janet and Kim work full-time for of Pet Kingdom. Janet's Social Security number is 123-45-6789, and Kim's Social Security number is 987-65-4321. Pet Kingdom is an accrual method, calendar year taxpayer. Inventories are determined using FIFO and the lower of cost or market method. Pet Kingdom uses the straight-line method of depreciation for book purposes and accelerated depreciation (MACRS) for tax purposes. . During 2018, the partnership distributed $200,000 to Janet and $100,000 to Kim. Balance Sheet Assets Cash Trade notes and accounts receivable Inventories Stock Investments State Bonds Certificate of deposit Buildings and other depreciable assets Accumulated Depreciation Land Other Assets Jan 1 2018 1,056,000 1,815,000 3,300,000 990,000 330,000 385,000 4,805,000 -727,000 715,000 123,000 12,792,000 Dec 31 2018 1,176,000 2,021,000 3,636,000 990,000 330,000 385,000 4,805,000 -847,000 715,000 113,000 13,324,000 Liabilities and Equity Accounts Payable Other current recourse liabilities Mortgages Payable (qualified nonrecourse) Capital Janet Capital - Kim Jan 1 2018 2,035,000 213,000 4,550,000 2,997,000 2,997,000 12,792,000 Dec 31 2018 1,837,000 184,000 4,322,000 3,440,500 3,540,500 13,324,000 Tax Return Problem $ Income Statement Income Gross Sales Sales Returns and Allowances Net Sales Cost of Goods Sold Gross Profit Dividends received from stock investments in less than 20% owned US corporation Interest Income: Municipal Bonds 7,500 Certificates of deposit 24,000 Total Income 6,900,000 240,000 6,660,000 2.760,000 3,900,000 52,500 31,500 3,984,000 $ $ 330,000 300,000 $ Expenses Guaranteed Payments Janet Morton Kim Wong Salaries - other Taxes (sales, local, and payroll) Repairs and Maintenance Interest expense (not related to tax exempt securities) Advertising Rental Expense Depreciation Charitable Contributions Employee Benefit Programs Insurance Expense Total Expenses Net income * Depreciation for tax purposes is $165,000 630,000 870,000 285,000 168,000 261,000 69,000 129,000 120,000 45,000 72,000 48,000 $ 2,697,000 1,287,000 Complete the Form 1065 (ALL schedules and attachments), Janet's K-1, and Kim's K-1. Even though the M-3 is required, complete the M-1 instead of the M-3 Tax Return Problem On November 1, 2005, Janet Morton and Kim Wong formed Pet Kingdom, General Partnership, to sell pets and pet supplies. Pertinent information regarding Pet Kingdom is summarized as follows: Pet Kingdom's business address is 1010 Northwest Parkway, Dallas, TX 75225; its telephone number is (214) 555-2211; and its e-mail address is petkingdom@pki.com. The employer identification number is 11-1111111, and the principal business activity code is 453910. Janet and Kim each own 50% of the partnership, Janet is president and the tax matters partner. Kim is vice - president of the company. Both Janet and Kim work full-time for of Pet Kingdom. Janet's Social Security number is 123-45-6789, and Kim's Social Security number is 987-65-4321. Pet Kingdom is an accrual method, calendar year taxpayer. Inventories are determined using FIFO and the lower of cost or market method. Pet Kingdom uses the straight-line method of depreciation for book purposes and accelerated depreciation (MACRS) for tax purposes. . During 2018, the partnership distributed $200,000 to Janet and $100,000 to Kim. Balance Sheet Assets Cash Trade notes and accounts receivable Inventories Stock Investments State Bonds Certificate of deposit Buildings and other depreciable assets Accumulated Depreciation Land Other Assets Jan 1 2018 1,056,000 1,815,000 3,300,000 990,000 330,000 385,000 4,805,000 -727,000 715,000 123,000 12,792,000 Dec 31 2018 1,176,000 2,021,000 3,636,000 990,000 330,000 385,000 4,805,000 -847,000 715,000 113,000 13,324,000 Liabilities and Equity Accounts Payable Other current recourse liabilities Mortgages Payable (qualified nonrecourse) Capital Janet Capital - Kim Jan 1 2018 2,035,000 213,000 4,550,000 2,997,000 2,997,000 12,792,000 Dec 31 2018 1,837,000 184,000 4,322,000 3,440,500 3,540,500 13,324,000 Tax Return Problem $ Income Statement Income Gross Sales Sales Returns and Allowances Net Sales Cost of Goods Sold Gross Profit Dividends received from stock investments in less than 20% owned US corporation Interest Income: Municipal Bonds 7,500 Certificates of deposit 24,000 Total Income 6,900,000 240,000 6,660,000 2.760,000 3,900,000 52,500 31,500 3,984,000 $ $ 330,000 300,000 $ Expenses Guaranteed Payments Janet Morton Kim Wong Salaries - other Taxes (sales, local, and payroll) Repairs and Maintenance Interest expense (not related to tax exempt securities) Advertising Rental Expense Depreciation Charitable Contributions Employee Benefit Programs Insurance Expense Total Expenses Net income * Depreciation for tax purposes is $165,000 630,000 870,000 285,000 168,000 261,000 69,000 129,000 120,000 45,000 72,000 48,000 $ 2,697,000 1,287,000 Complete the Form 1065 (ALL schedules and attachments), Janet's K-1, and Kim's K-1. Even though the M-3 is required, complete the M-1 instead of the M-3
