Please prepare Schedule K1 for John Parsons and Geroge Smith based on the given information
January 1 December 31 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 S214,848 5844,422 Premium's accounting firm provides the following additional information. Cash distributions to shareholders (not reported on Form 1099-DIV and made based on percentage of ownership): $100,000 Beginning balance, accumulated adjustments account: 5111,148 Required: Prepare Form 11205, Additional Information - Continuation Statement, and Schedule K-is for John Parsons and George Smith, both of whom live at 5507 20th Street, Cut and Shoot, TX 77303. If an amount box does not require an entry or the answer is zero, enter "O". Enter all amounts as positive numbers, unless otherwise instructed. If required, round amounts to the nearest dollar. Make realistic assumptions about any missing data. Note: This problem is for the 2018 tax year. 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 Selection 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. $ 100,000 2,410,000 9,607 (203,102) (278,143) Interest income Gross sales receipts Beginning inventory Direct labor Direct materials purchased Direct other costs Ending inventory Salaries and wages Officers' salaries ($75,000 each to Parsons and Smith) Repairs Depreciation expense, tax and book (249,356) 3,467 (442,103) (150,000) (206,106) (15,254) Interest expense (35,222) Rent expense (operating) (40,000) Taxes (65,101) (20,000) Charitable contributions (cash) Advertising expenses Payroll penalties (20,000) (15,000) Other deductions (59,899) A 2018 comparative balance sheet appears below. January 1 December 31 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 S214,848 5844,422 Premium's accounting firm provides the following additional information. Cash distributions to shareholders (not reported on Form 1099-DIV and made based on percentage of ownership): $100,000 Beginning balance, accumulated adjustments account: 5111,148 Required: Prepare Form 11205, Additional Information - Continuation Statement, and Schedule K-is for John Parsons and George Smith, both of whom live at 5507 20th Street, Cut and Shoot, TX 77303. If an amount box does not require an entry or the answer is zero, enter "O". Enter all amounts as positive numbers, unless otherwise instructed. If required, round amounts to the nearest dollar. Make realistic assumptions about any missing data. Note: This problem is for the 2018 tax year. 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 Selection 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. $ 100,000 2,410,000 9,607 (203,102) (278,143) Interest income Gross sales receipts Beginning inventory Direct labor Direct materials purchased Direct other costs Ending inventory Salaries and wages Officers' salaries ($75,000 each to Parsons and Smith) Repairs Depreciation expense, tax and book (249,356) 3,467 (442,103) (150,000) (206,106) (15,254) Interest expense (35,222) Rent expense (operating) (40,000) Taxes (65,101) (20,000) Charitable contributions (cash) Advertising expenses Payroll penalties (20,000) (15,000) Other deductions (59,899) A 2018 comparative balance sheet appears below
