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Your help is greatly appreciated! Please help me with 1120S, Additional Information - Continuation Statement, and Schedule K-1s for John Parsons and George Smith, as
Your help is greatly appreciated! Please help me with 1120S, Additional Information - Continuation Statement, and Schedule K-1s for John Parsons and George Smith, as everything has been provided. Sorry about the different sizes of the screenshots. Thank you!
Note: This problem is for the 2019 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 1005 16th Street, Cut and Shoot, TX 77303. Premium's Selection was made on January 15, 2012, its date of incorporation. The following information was taken from the company's 2019 income statement. $ 100,000 2,410,000 9,607 (203,102) 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 Interest expense Rent expense operating) (278,143) (249,356) 3,467 (442,103) (150,000) (206,106) (15,254) (35,222) (40,000) (65,101) Taxes Charitable contributions (cash) (20,000) Advertising expenses Payroll penalties Other deductions Book income A comparative balance sheet appears below. (20,000) (15,000) (59,899) 704,574 December 31, 2019 Cash January 1, 2019 $ 47,840 93,100 $ ? 123,104 Accounts receivable Inventories 9,607 3,467 8,333 17,582 138,203 185,348 Prepaid expenses Building and equipment Accumulated depreciation Land Total assets (84,235) (?) 2,000 2,000 $214,848 $844,422 $ 42,500 $ 72,300 Accounts payable Notes payable (less than 1 year) Notes payable (more than 1 year) 4,500 2,100 26,700 24,300 30,000 30,000 Capital stock Retained earnings Total liabilities and capital $111,148 ? $ 214,848 $844,422 Premium's accounting firm provides the following additional information. Distributions to shareholders (not reported on Form 1099-DIV and made based on percentage of ownership): Beginning balance, Accumulated adjustments account: $100,000 111,148 Required: Prepare Premium's Form 11205, Additional Information - Continuation Statement, and Schedule K-1s for John Parsons and George Smith, 5607 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 dataStep by Step Solution
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