Premium's accounting firm provides the following additional information.

Required:

Prepare Premium's Form $1120$S$,$ Additional Information $-$ Continuation Statement, and Schedule K$-1$s for John Parsons and George Smith,

$560720$th 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. Schedule K$-1$ for George Smith

Prepare the Schedule K$-1$ for George Smith.

If required, round amounts to the nearest dollar.

Note:

Box $12$: Code A is is to report cash charitable contributions.

Box $16$: Code C is used to report nondeductible expenses, and Code D is used to report distributions not reported on Form $1099-$DIV.

Box $17$: Code A is used to report Investment income, Code AC is used to report gross receipts for Section $448($c$)$ purposes.

Box $17$: Code $V$ is used to report information required for the QBI deduction. You are not required to provide a statement of the QBI items.

$671120$Instructions

Note: This problem is for the $2021$ tax year.

John Parsons $(123-45-6781)$ and George Smith $(123-45-6782)$ are $70\%$ and $30\%$ owners, respectively, of Premium, Inc. $(11-1111120),$ a

candy company located at $100516$th Street, Cut and Shoot, TX $77303.$ Premium's S election was made on January $15,2012,$ its date of

incorporation. The following information was taken from the company's $2021$ income statement.

A comparative balance sheet appears below.