Designs income statement, Financial Accounting

Assignment Help:

Please use the information below to complete Form 1120S and the Schedule K-1%u2019s for Form 1120S. Blank forms can be found on the Hands-On Assignment page or in Doc Sharing. If you have a tax software package, please feel free to use it, but be aware that I will not be able to answer specific questions about the software package.

GENERAL COMPANY INFORMATION
Margaret Brown and Joel Lee each own 50% of Designs Inc. with no other class of stock authorized. On June 6, 2009, they formed to provide design services. Their business activity code is 541400.
Designs Inc.%u2019s business address is 2134 Merry Lane, Las Cruces, NM 08801. The telephone number is (575) 541-1122, and the e-mail address is [email protected].
The employer identification number is 11-1111111. Margaret is the president of the company, and Joel is the vice president. Margaret and Joel are the only full-time designers employed by Designs, Inc., and they perform all of the design services of the corporation. Margaret%u2019s Social Security number is 123-45-6789, and Joel%u2019s Social Security number is 555-48-9898.
Designs Inc. is an accrual method, calendar-year taxpayer. Designs Inc. uses the straight-line method of depreciation for both book and tax purposes. (You are not provided enough detailed data to complete a Form 4562 (depreciation). Enter the amount of depreciation on line 20 of Form 1120.) The corporation does not maintain any inventory.
During the year, the corporation distributed cash dividends of $15,192.

 

Designs Inc. Income Statement

Income
Design fees $739,000
Interest income (certificates of deposit) 2,700
Total income $741,700

Expenses
Salaries%u2014officers
Margaret Brown $190,000
Joel Lee 190,000 $380,000
Salaries%u2014clerical 61,000
Taxes
Property 26,810
Payroll 23,280
State income 3,140
Other miscellaneous 2,390 55,620
Repairs and maintenance 16,340
Meals and entertainment 9,800
Travel 5,600
Charitable contributions 1,200
Interest expense on business loans 31,100
Advertising 17,650
Rental expense 9,270
Depreciation 35,910
Contributions to pension plans 31,000
Employee benefit programs 21,170
Accounting service 13,790
Dues and subscriptions 5,100
Insurance 17,750
Legal and professional services 11,000
Miscellaneous 4,360
Telephone 3,160
Total expenses (730,820)
Net income before taxes $ 10,880
Federal income tax (5,192)
Net income per books $ 5,688

Designs Inc. Balance Sheet
Assets January 1, 2011 December 31, 2011
Cash $ 35,610 $ 42,580
Accounts receivable 45,100 43,300
Certificates of deposit 134,000 143,000
Depreciable assets 210,922 221,488
Accumulated depreciation (47,520) (83,430)
Land 42,000 42,000
Other assets 3,638 2,490
Total assets $ 423,750 $ 411,428
====== ======

Liabilities and Equity January 1, 2011 December 31, 2011
Accounts payable $ 26,550 $ 27,497
Other current liabilities 15,110 17,853
Mortgages 126,000 114,300
Capital stock 200,000 200,000
Retained earnings 56,090 51,778
Total liabilities and equity $ 423,750 $ 411,428

 


Related Discussions:- Designs income statement

Review a certified public accountant, Review - Accounting service which pro...

Review - Accounting service which provides some assurance as to reliability of financial information. In a review, a CERTIFIED PUBLIC ACCOUNTANT (CPA) doesn't conduct an examinatio

Home work, 1. The acceptance of a capital budgeting project is usually eval...

1. The acceptance of a capital budgeting project is usually evaluated on its own merits. That is, capital budgeting decisions are treated separately from capital structure decision

What are the january cash collections from sales, O'Neill Co. has $298,106 ...

O'Neill Co. has $298,106 in accounts receivable on January 1. Budgeted sales for January are $840,001. O'Neill expects to sell 20% of its merchandise for cash. Of the remaining 80%

Journalize the transaction, received 16,000 contribution in exchange for co...

received 16,000 contribution in exchange for common stock

Compute ratio, The comparative financial statement of new World Piano Compa...

The comparative financial statement of new World Piano Company for 2003,2002, and 2001 included the following selected data: 2003 2002 2003 In Millions Cash $67 $66 $62 Short T

UNDERSTANDING bUSINESS, I NEED HELP in business ratios for two company.Ido...

I NEED HELP in business ratios for two company.Ido not know how to do the formulas. Can you help.

Items reducing the deficit-liquidation of companies, Items reducing the def...

Items reducing the deficit: Items reducing the deficit would include: (a)    Profits from trading; (b)    Estimated profit on the realisation of assets. Notes: (a) Whe

Variation of securities-executorship laws and accounts, Variation of securi...

Variation of securities It would seem logical to carry out a strict apportionment between income and capital every time investments are bought or sold. If this were done, it wo

Please show work so i can follow, a. Conversion cost was 140,000 and was fo...

a. Conversion cost was 140,000 and was four times the prime cost b. Direct materials used in production equaled 5,000 c. Cost of goods manufactured was 154,000 d. Ending work in pr

Revenue and expense accounts, Are revenue and expense accounts permanent ac...

Are revenue and expense accounts permanent accounts and should not be closed at the end of the accounting period?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd