{"id":23935,"date":"2022-01-10T14:12:14","date_gmt":"2022-01-10T14:12:14","guid":{"rendered":"https:\/\/assignmenttutors.net\/blog\/bottle-up-inc-tax-returns-accounting-homework-help\/"},"modified":"2022-01-10T14:12:14","modified_gmt":"2022-01-10T14:12:14","slug":"bottle-up-inc-tax-returns-accounting-homework-help","status":"publish","type":"post","link":"https:\/\/assignmenttutors.net\/blog\/bottle-up-inc-tax-returns-accounting-homework-help\/","title":{"rendered":"Bottle-up, inc tax returns | Accounting homework help"},"content":{"rendered":"
\n

C:11-63 Bottle-Up, Inc., was organized on January 8, 2000, and made its S election on January 24,<\/span>
2000. The necessary consents to the election were filed in a timely manner. Its federal tax<\/span>
identification number is 38-1507869. Its address is 1234 Hill Street, Gainesville, FL<\/span>
32607. Bottle-Up uses the calendar year as its tax year, the accrual method of accounting,<\/span>
and the first-in, first-out (FIFO) inventory method. Bottle-Up manufactures ornamental<\/span>
glass bottles. It made no changes to its inventory costing methods this year. It uses the specific<\/span>
identification method for bad debts for book and tax purposes. Herman Hiebert (S.S.<\/span>
No. 123-45-6789) and Melvin Jones (S.S. No. 100-67-2000) own 500 shares each. Both<\/span>
individuals materially participate in Bottle-Up\u2019s single activity. Herman Hiebert is the tax<\/span>
matters person. Financial statements for Bottle-Up for the current year are shown in Tables<\/span>
C:11-2 through C:11-4. Assume that Bottle-Up\u2019s business qualifies as a U.S. production<\/span>
activity and that its qualified production activities income is $90,000. The S corporation<\/span>
uses the small business simplified overall method for reporting these activities (see discussion<\/span>
for Line 12d of Schedules K and K-1 in the Form 1120S instructions). Prepare a current<\/span>
year S corporation tax return for Bottle-Up, showing yourself as the paid preparer.<\/span><\/p>\n

_ TABLE C:11-2<\/span>
Bottle-Up, Inc. Income Statement for the Year Ended December 31 of the Current<\/span>
Year (Problem C:11-63)<\/span>
Sales $2,500,000<\/span>
Returns and allowances (15,000 )<\/span>
Net sales $2,485,000<\/span>
Beginning inventory $ 102,000<\/span>
Purchases 900,000<\/span>
Labor 200,000<\/span>
Supplies 80,000<\/span>
Utilities 100,000<\/span>
Other manufacturing costs 188,000 a<\/span>
Goods available for sale $1,570,000<\/span>
Ending inventory (96,000 ) 1,474,000 b<\/span>
Gross profit $1,011,000<\/span>
Salaries c $ 451,020<\/span>
Utilities expense 54,000<\/span>
Depreciation (MACRS depreciation is $36,311) 11,782<\/span>
Automobile and truck expense 26,000<\/span>
Office supplies expense 9,602<\/span>
Advertising expense 105,000<\/span>
Bad debts expense 620<\/span>
Rent expense 30,000<\/span>
Interest expense d 1,500<\/span>
Meals and entertainment expense 21,000<\/span>
Selling expenses 100,000<\/span>
Repairs and maintenance expense 38,000<\/span>
Accounting and legal expense 4,500<\/span>
Charitable contributions e 9,000<\/span>
Insurance expense f 24,500<\/span>
Hourly employees\u2019 fringe benefits 11,000<\/span>
Payroll taxes 36,980<\/span>
Other taxes 2,500<\/span>
Penalties (fines for overweight trucks) 1,000 (938,004)<\/span>
Operating profit $ 72,996<\/span>
Other income and losses:<\/span>
Long-term gain on sale of capital assets $ 48,666g<\/span>
Sec. 1231 loss (1,100) h<\/span>
Interest on U.S. Treasury bills 1,200<\/span>
Interest on State of Florida bonds 600<\/span>
Dividends from domestic corporations 11,600<\/span>
Investment expenses (600) 60,366<\/span>
Net income 133,362<\/span>
a Total MACRS depreciation is $74,311. Assume that $38,000 of depreciation has been allocated to cost of sales for<\/span>
both book and tax purposes so that the book and tax inventory and cost of sales amounts are the same. The AMT<\/span>
depreciation adjustment on personal property is $9,000.<\/span>
b The cost of goods sold amount reflects the Uniform Capitalization Rules of Sec. 263A. The appropriate restatements<\/span>
have been made in prior years.<\/span>
c Officer salaries of $120,000 are included in the total. All are employer\u2019s W-2 wages.<\/span>
d Investment interest expense is $500. All other interest expense is trade- or business-related. None of the interest<\/span>
expense relates to the production of tax-exempt income.<\/span>
e The corporation made all contributions in cash to qualifying charities.<\/span>
f Includes $3,000 of premiums paid for policies on lives of corporate officers. Bottle-Up is the beneficiary for both policies.<\/span>
g The corporation acquired the capital assets on March 3, 2007 for $100,000 and sold them on September 15, 2009,<\/span>
for $148,666.<\/span>
h The corporation acquired the Sec. 1231 property on June 5, 2008 for $10,000 and sold it on December 21, 2009, for<\/span>
$8,900.<\/span><\/p>\n

_ TABLE C:11-3<\/span>
Bottle-Up, Inc. Balance Sheet for January 1 and December 31 of the Current Year<\/span>
(Problem C:11-63)<\/span>
January 1 December 31<\/span>
Assets:<\/span>
Cash $ 15,000 $116,948<\/span>
Accounts receivable 41,500 45,180<\/span>
Inventories 102,000 96,000<\/span>
Stocks 103,000 74,000<\/span>
Treasury bills 15,000 16,000<\/span>
State of Florida bonds 10,000 10,000<\/span>
Building and equipment 374,600 375,000<\/span>
Minus: Accumulated depreciation (160,484) (173,100)<\/span>
Land 160,000 190,000<\/span><\/p>\n

Total $660,616 $750,028<\/span><\/p>\n

Liabilities and equities:<\/span>
Accounts payable $ 36,000 $ 10,000<\/span>
Accrued salaries payable 12,000 6,000<\/span>
Payroll taxes payable 3,416 7,106<\/span>
Sales taxes payable 5,200 6,560<\/span>
Due to Mr. Hiebert 10,000 5,000<\/span>
Mortgage and notes payable (current maturities) 44,000 52,000<\/span>
Long-term debt 210,000 260,000<\/span>
Capital stock 10,000 10,000<\/span>
Retained earnings 330,000 393,362<\/span><\/p>\n

Total $660,616 $750,028<\/span><\/p>\n

_ TABLE C:11-4<\/span>
Bottle-Up, Inc. Statement of Change in Retained Earnings, for the Current Year<\/span>
Ended December 31 (Problem C:11-63)<\/span>
Balance, January 1 $330,000a<\/span>
Plus: Net income $133,362<\/span>
Minus: Dividends (70,000 ) 63,362<\/span><\/p>\n

Balance, December 31 $393,362<\/span><\/p>\n

a The January 1 accumulated adjustments account balance is $274,300.”\u00a0<\/span><\/p>\n

I have attached my work for review<\/span><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

C:11-63 Bottle-Up, Inc., was organized on January 8, 2000, and made its S election on January 24,2000. The necessary consents to the election were filed in a timely manner. Its federal taxidentification number is 38-1507869. Its address is 1234 Hill Street, Gainesville, FL32607. Bottle-Up uses the calendar year as its tax year, the accrual method […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[],"class_list":["post-23935","post","type-post","status-publish","format-standard","hentry","category-education"],"_links":{"self":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/23935","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/comments?post=23935"}],"version-history":[{"count":0,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/23935\/revisions"}],"wp:attachment":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/media?parent=23935"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/categories?post=23935"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/tags?post=23935"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}