In the Files
Hello, Thank you so much for assisting us with our 2019 tax return. I know that we already missed the extension deadline, but I am hoping that we can get this resolved before the end of the year. We asked our previous accountant for as much information as possible, and he sent us the following account balances: Here are some other notes that I think will be pertinent: *The only cost that is ever on account is raw materials. The only cost that is ever credited to accrued expenses is other factory costs. All other costs are paid for in cash immediately, so they have no relation to accounts payable or accrued expenses. *The work in process inventory always has a $0 beginning and ending balance. *The 9/5 payment to Adams Cruise and Air includes $450 for meals. *The 12/23 payment to Adams Cruise and Air includes $1,400 for meals. *The 5/20 payment to Adams Cruise and Air includes $200 for meals. *A list of vendors that service the factory exclusively: Factory Payroll Processing: The Payroll People Other Factory Costs: Nichols Equipment Maintenance Mimi Cleaning Triana Wolf Leasing Placeholder Company *The St. Lucie Bonds that is listed on that 2018 balance sheet are actually Hillsborough County bonds. The Hillsborough County bonds were purchased on July 6, 2004 and were sold on November 16, 2019 for $3,215. *The shares of Pioneer Corp common stock on March 14, 2019 for $26,400. The stock was purchased for $18,200 on May 9, 2001. *We did not purchase or dispose of any machinery and equipment during the year. Again, thank you for your help! My entire staff and I are about to go on vacation until January 2, 2021, so we will be unreachable for questions. I trust that you will be able to file the return on time. Best Regards, Corporate Tax Return Instructions Part I Instructions You are a newer employee working for LLC. Oscar Corporation, a dog sweater manufacturer, is one of your new clients. Their previous accountant was known to have poor record-keeping habits, and as a result, Oscar Corporation’s financial records are incomplete and hard to decipher. 1. Access the 2019TransactionList.xlsx file and code each transaction. Use your professional judgment to determine the best way to organize this data. 2. Using the information from Step 1, create an accrual income statement and balance sheet. Please ensure that these statements are formatted properly and understandable. You may have to use some professional judgment. Any assumptions made must be noted in your submission. Additional information: · Book depreciation for 2019 is $36,057. · Bad debt expense for 2019 is $7,152. (Accrual – reserve method) · Actual debts written off during the year were $8,950. · Accrual gross revenue during 2019 was $1,930,000. · Sales returns during 2019 was $245,662 (The square deposits in the transaction list are net of returns). · You may need to use the information from 2020ClientEmail.docx and 2020ClientEmail2.docx to correctly code each transaction. Chart of Accounts: 11000 Cash 41000 Sales 12000 Accounts receivable 41100 Sales returns 12100 Allowance for doubtful accounts 45000 Dividend income 13000 Notes receivable 46000 Interest income 14100 Raw materials 47000 Gain 14200 Work in process 50000 Cost of goods sold 14300 Finished goods 51000 Salaries and wages expense 15100 Investment in municipal bonds – SLC 52100 Maintenance 15200 Investment in common stock – Pioneer 52200 Property taxes 15300 Investments – Domestic Corporation 52300 Licenses and fees 16000 Land 52400 Payroll taxes 16100 Building 52500 Depreciation expense 16150 Mineral deposit 52550 Depletion expense 16200 Machinery and equipment 52600 Bad debt expense 16250 Accumulated depreciation 52700 Advertising 21000 Bank loans 52800 Insurance 21200 Accounts payable 52900 Utilities 21300 Accrued expenses 53000 Travel expense 22000 Bonds payable 53100 Administrative expense 30000 Preferred stock 54000 Interest expense 31000 Common stock 55000 Charitable contributions 31100 Additional paid in capital 56000 Legal fees 32000 Retained earnings 57000 Federal tax 33000 Dividends 58000 Loss 70000 Factory overhead 8/23/20 Accounting & Tax Solutions, I think this is the information you were asking for. I referred to our end of year counts, and I found the ending inventory balances: The ending balance in raw materials is $77616. The ending balance in finished goods is $140625. According to the December 31st statements, the bank loan balance as of 12/31/19 was $76651. As of the end of the year, we owed $165882 in AP and $12894 in accrued expenses. Cheers,