ABC Inc., a S Corporation, 123 Oak Dr Houston TX 77002
Date S election effective- 1/1/2000
Date Incorporated 1/1/2000
Business Activity, retail sales (product-clothing)
Business Code 448140
The corporation is a cash basis business
Total Assets $5,000,000
Gross Receipts $1,000,000
Cost of Goods Sold $400,000 (assume no beginning and ending inventory and
purchases are $400,000)
ABC Inc. uses FIFO method for determining the cost of goods sold and the cash
method for income and other expenses.
Compensation to Bee Jones, 40% shareholder/President was $200,000
There are three shareholders in the S Corporation
Salaries and wages paid to non-shareholder employees were $50,000
Office Rent paid for corporate office was $10,000
Supplies expense totaled $40,000
The corporation received insurance proceeds of $150,000 for life insurance on a
key executive. Relative insurance premiums paid for the year were $5,000.
Beginning Balances: Accumulated Adjustments Account $100,000
Other Adjustments Account $ 25,000
Net Income per Books was $445,000 including Life insurance proceeds of
$150,000 and Life Insurance Premiums of $5,000.
There were no distributions made to the shareholders.
The corporation has no debts.
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