ACCT 429 DeVry University Chicago Tax Form Computations Case Scenario Below is the information needed to complete the tax form computations. The need to be

ACCT 429 DeVry University Chicago Tax Form Computations Case Scenario Below is the information needed to complete the tax form computations. The need to be using the 2019 tax forms and I will provide attachments of both types of forms. I believe I need both type of forms filled out for George and John so I have included two copies of each form.

John Parsons (123-45-6871) 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 S election 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

Interest Income

$100,000

Gross Sales Receipts

2,410,000

Beginning Inventory

9,607

Direct Labor

(203,102)

Direct Materials purchased

(278,143)

Direct other costs

(249,356)

Ending Inventory

3,467

Salaries and wages

(442,103)

Officers salaries

(150,000)

Repairs

(206,106)

Depreciation expenses

(15,254)

Interest expenses

(35,222)

Rent expenses (operating)

(40,000)

Taxes

(65,101)

Charitable contribution (Cash)

(20,000)

Advertising expenses

(20,000)

Payroll penalties

(15,000)

Other deductions

(59,899)

Book income

$704,574

A 2018 comparative balance sheet appears below.

1-Jan

31-Dec

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 liabilities and capita

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

214,848

$844,422

Premium’s accounting firm provides the following additional information.

Cash distributions to shareholders $100,000

Beginning balance, accumulated adjusted account $111,148

Using the preceding information, prepare a complete Form 1120s (Links to an external site.) and Schedule K-1s for John Parsons and George Smith, both of whom live at 5607 20th Street, Cut and Shoot, TX 77303. Do not complete the Forms 1125-A (Links to an external site.), 1125-E (Links to an external site.), and 4562 (Links to an external site.). If any information is missing, make realistic assumptions.

Graded Anonymously: no

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