John Parsons (123-45-6781) 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, 2010, its date of incorporation. The following information was taken from the company's 2017 income statement. Premium's book income for the year was $704,574.

A 2017 comparative balance sheet appears below.

Premium's accounting firm provides the following additional information.
Cash distributions to shareholders ...............................................    $100,000
Beginning balance, accumulated adjustments account .............    $111,148
Using the preceding information, prepare a Form 1120S and Schedule K-Is for John Parsons and George Smith, both of whom live at 5607 20th Street, Cut and Shoot, TX 77303. Do not complete Forms 1125-A, 1125-E, and 4562. If any information is missing, make realistic assumptions.

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$ 100,000 Interest income Gross sales receipts 2,410,000 Beginning inventory 9,607 (203,102) (278,143) Direct labor Direct materials purchased Direct other costs (249,356) Ending inventory Salaries and wages 3,467 (442,103) Officers' salaries ($75,000 each to Parsons and Smith) (150,000) (206,106) Repairs Depreciation expense, tax and book (15,254) Interest expense Rent expense (operating) (35,222) (40,000) Тахes (65,101) Charitable contributions (cash) (20,000) (20,000) Advertising expenses Payroll penalties Other deductions (15,000) (59,899) January 1 December 31 Cash $ 47,840 Accounts receivable 93,100 123,104 Inventories 9,607 3,467 Prepaid expenses Building and equipment Accumulated depreciation 8,333 17,582 138,203 185,348 (84,235) (?) Land 2,000 $214,848 2,000 $844,422 Total assets $ 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 Capital stock Retained earnings Total liabilities and capital 30,000 30,000 111,148 $214,848 $844,422