# Snap-it-open corporation 2014 forms | Accounting homework help

Snap-it-open Appendix C – Corporate Tax Return Problem Journal Entries and Checkfigures (use 2014 forms) Journal Entries: You will need to calculate Depreciation and Bad Debt Expense. Below are the payroll and deferred tax journal entries you will need to make to the financial statements. Assume there are no state income taxes.

Payroll Tax Expense 25,698 FICA Payable 292k *.0765 22,338 FUTA Payable 8*7k*.06 3,360 To record payroll taxes expense FICA Payable 22,338 FUTA Payable 3,360 Cash 25,698 To record payment of payroll taxes Deferred Tax Asset 13,158 Tax Expense 191,625 Deferred Tax Liability 204,783 Adjusting Journal Entry for Deferred Tax items (refer to Sch M temporary differences and multiply them by 34% tax rate to calculate the amounts). The above entries are needed as they impact corporate returns but learning of these rules are covered in more detail in the payroll tax class or in financial accounting classes. You also have other journal entries that are typical of introductory accounting classes and you will need to make those journal entries. As you read the information in the problem, you will notice there were other transactions during the year and you need to make these journal entries too. I suggest you use T accounts as there are a lot of transactions that impact cash and it is important to keep track of the balances. Forms you need to complete (use 2014 Forms) Form 1120 – 5 pages Schedule G – 1 page Form 1125-A – 1 page Form 1125-E – 1 page Form 4562 – 1 page (do not complete Form 8903 – 1 page)

Checkfigures: Here are a couple of checkfigures. I’ve given you some actual numbers and for others I’ve given you partial answers. Hopefully this is a good check for you as you complete the project. Form 1120 – Page 1 (Taxable Income) Line 11 = \$1,4xx,xxx (where XXX represents numbers) Line 20 = \$x0x,x02 Line 27 = \$1,4xx,xxx Line 30 = 0 Line 36 = \$40,000 (credit the overpayment to next year) Form 1120 – Page 3 Part 1 – blank Part 2 – complete lines 13,15,18 and 21 Schedule K line 2a = 339900 Form 1120 – Page 4 Answer questions. For 15a and b, answer Yes, they were required to and they did file Forms 1099. Form 1120 – Page 5 – Schedule L (Balance Sheet) Leave beginning of year information/columns blank (columns (a) and (b)) Complete columns (c) and (d) with ending numbers. Reminder: you will get these numbers off the financial statement you prepared. Line 1 = x2x,3×2 Line 2b = 3X,X00 Line 6 = 53,xxx Line 10b = 1XX,XXX Line 15 = \$1,876,760 Line 18 = x00,xxx Line 20 = 6xx,xxx Line 22a = 1XX,XXX Line 25 = 36x,xx7 Form 1120 – Page 5 – Schedule M-1 Reconciliation of Income (Loss) Line 2: 19x,xxx) Line 6: 60x,xxx Line 10: 0 Form 1120 – Page 5 – Schedule M-2 Retained Earnings Line 1 = 0 Line 4 = 36x,xx7 Line 8 = 36x,xx7 Form 1125-A – Cost of Goods Sold Line 1 = 0 Line 8 = 5xx,0xx Section 263A does not apply and there was no change in determining quantities, etc. Form 1125-E – Compensation of Officers Complete for both officers Leave line 3 blank Schedule G Complete Part 2 Form 4562 Line 5 = 500,000 Line 9 = 500,000 Line 12 = 47x,xx2 Line 13 = 26,xxx You should complete lines 1 through 13 plus lines 14, 19, and 22. For the Section 179 on Form 4562, enter the used machine and the new machine on Line 6. You should take as much Section 179 on the used machines and the remaining amount on the new machine. Enter these numbers in Column C.

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