Prepare the 2020 Form 1120S. It should include K-1s for both shareholders.

12-36 PART 3 How Though Entities Tax Return Problem Tax Forms Problem ProConnect Tax John Parsons (123-45-6781) and George Smith (123-45-6782) are 70% and 30% Tth Street, Cut and Shoot, TX 77303. Premium's Selection was made on January 15, ers, respectively, of Premium, Inc. (11-1111120), a candy company located at 1095 2012, its date of incorporation. The following information was taken from the con pany's 2020 income statement. $ 100,000 Interest income 2.410,000 Gross sales receipts 9,607 Beginning inventory (203,102) Direct labor (278,143) Direct materials purchased Direct other costs (249,356) Ending inventory 3,467 Salaries and wages (442,103) Officers salaries (575,000 each to Parsons and Smith) (150,000) Repairs (206,106) Depreciation expense, tax and book (15,254) Interest expense (35,222) Rent expense (operating) (40,000) Taxes (65,101) Charitable contributions (cash) (20,000) Advertising expenses (20,000) Payroll penalties (15,000) Other deductions (59,899) 704,574 A comparative balance sheet appears below Book income Cash Accounts receivable Inventories Prepaid expenses Building and equipment Accumulated depreciation Land Total assets January 1, 2020 December 31, 2020 , $ 47,840 $? 93,100 123.104 9,607 3,467 8,333 17,582 138,203 185,348 (84,235) 12 2,000 2,000 $214,848 $844,422 Accounts payable Notes payable less than 1 year) Notes payable Imore than 1 year) Capital stock Retained earnings Total liabilities and capital $ 42,500 4,500 26,700 30,000 111,148 $214,848 $ 72,300 2.100 24,300 30,000 2 $844 422 $100,000 Premium's accounting firm provides the following additional information Distributions to shareholders Beginning balance, Accumulated adjustments account 111,148 Ordinary business income for OBI 639,574 W-2 wages for OBI Prepare Premium's Form 11205 and Schedule K-Is for John Parsons and George Semih, 5607 20th Street, Cut and Shoot, TX 77303. Suggested software: ProConnect Tax 795,205 12-36 PART 3 How Though Entities Tax Return Problem Tax Forms Problem ProConnect Tax John Parsons (123-45-6781) and George Smith (123-45-6782) are 70% and 30% Tth Street, Cut and Shoot, TX 77303. Premium's Selection was made on January 15, ers, respectively, of Premium, Inc. (11-1111120), a candy company located at 1095 2012, its date of incorporation. The following information was taken from the con pany's 2020 income statement. $ 100,000 Interest income 2.410,000 Gross sales receipts 9,607 Beginning inventory (203,102) Direct labor (278,143) Direct materials purchased Direct other costs (249,356) Ending inventory 3,467 Salaries and wages (442,103) Officers salaries (575,000 each to Parsons and Smith) (150,000) Repairs (206,106) Depreciation expense, tax and book (15,254) Interest expense (35,222) Rent expense (operating) (40,000) Taxes (65,101) Charitable contributions (cash) (20,000) Advertising expenses (20,000) Payroll penalties (15,000) Other deductions (59,899) 704,574 A comparative balance sheet appears below Book income Cash Accounts receivable Inventories Prepaid expenses Building and equipment Accumulated depreciation Land Total assets January 1, 2020 December 31, 2020 , $ 47,840 $? 93,100 123.104 9,607 3,467 8,333 17,582 138,203 185,348 (84,235) 12 2,000 2,000 $214,848 $844,422 Accounts payable Notes payable less than 1 year) Notes payable Imore than 1 year) Capital stock Retained earnings Total liabilities and capital $ 42,500 4,500 26,700 30,000 111,148 $214,848 $ 72,300 2.100 24,300 30,000 2 $844 422 $100,000 Premium's accounting firm provides the following additional information Distributions to shareholders Beginning balance, Accumulated adjustments account 111,148 Ordinary business income for OBI 639,574 W-2 wages for OBI Prepare Premium's Form 11205 and Schedule K-Is for John Parsons and George Semih, 5607 20th Street, Cut and Shoot, TX 77303. Suggested software: ProConnect Tax 795,205