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    lololo12344321's Avatar
    lololo12344321 Posts: 4, Reputation: 1
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    #1

    Jan 24, 2010, 01:33 PM
    C corporation.prepare unadjusted balance and prepare 1120
    For the year ended December 2009 Practice C corporation

    Gross Income 590,800
    Cost of Goods Sold
    Project Expenses 115,000

    Expenses:
    Working Owner Compensation 220,000
    Other Salary 120,000
    Office Expense 6060
    Interest Expense 2600
    Donation 5000
    Meals % Entertainment (100%) 12,000
    Liability Insurance 6000
    Health Insurance-Employees 22,000
    Health Insurance-Officer/Owner 8,500
    Federal Taxes Paid 5,500
    Taxes: Payroll, tangile and state 31,000
    MACRS Depreciation expense 7,000
    New equipment purchased 3/1/09 4,500
    Auto expense (100%) 3,400 ---85% business use
    Amortization expense 80

    Other Income
    Divident Income (Microsoft stock) $400
    Interest Income $100.00

    BOOK & TRIAL BALANCE CASH BASIS 13/31/2009
    Cash & Money Market $ 35,627
    Equipment $75,000
    Accumulated Depreciation $(50,000)
    _________________
    25,000
    Organization Costs $1,200
    Accum. Amortization (267)
    ______________
    933

    Deposits-Utilities $2,000
    Investment-Microsoft $ 20,000

    Note Payable- Suntrust all LT $25,000
    Common Stock 5,000
    Paid in Capital 20,000
    Retained Earnings at 12/31/2008 10,900

    Additional Info

    1- on 12/31/08 form 1120 taxes paid was $7,000
    2- Overpayment on 2008 was $1,500 carried over to 12/31/2009
    3- The $5,500 in estimated 2009 tax payment made as follows
    3/15 $250
    6/15 1750
    9/15 1750
    12/15 1750
    4- Taxpayer desires to minimize taxes and apply any overpayment to next year
    5- Schedule L ---assume beginning cash $ 5887
    6- Complete schedule M1 and M2
    7- New assets purchased must be capitalized and depreciated using section 179 expense selection
    8- Personal use of auto expense is 15%

    Must prepare an adjusted trial balance then prepare tax return. Prepare 2009 form 1120 and 4562 and any supporting schedule.
    lololo12344321's Avatar
    lololo12344321 Posts: 4, Reputation: 1
    New Member
     
    #2

    Jan 24, 2010, 01:40 PM

    Main problem is that an adjusted trial balance is asked for and I honestly do not see what needs adjusting... Please help
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
    Uber Member
     
    #3

    Jan 25, 2010, 12:13 AM

    Um... hmm. Once you get the taxes done you'll have entries to make to account for them. But the only thing I see that maybe looks to need done prior to doing the taxes would #7 the new asset purchases.

    I'm not seeing anything else.

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