Question

could you teach me how to make the trial balance using the M-1 account for adjustments please?

PART 2 Corporations 2. On February 12, 2005, Nancy Trout and Deloves Lake formed Kingfisher Corporation to connect sell fishing tackle. Pertinent information regarding Kingfisher is summarized as follows . Kingfisher's business address is 1717 Main Street, Ely, MN 55731; its telephone • The employer identification number is 11-1111113, and the principal business activity code is 451110. • Nancy owns 50% of the common stock and is president of the company, and Delores owns 50% of the common stock and is vice president of the company No other class of stock is authorized . Both Nancy and Delores are full-time employees of Kingfisher Nancy's Social Secu- rity number is 123-45-6788, and Delores's Social Security number is 123-456787 • Kingfisher is an accrual method, calendar year taxpayer. Inventories are deter- mined using FIFO and the lower of cost or market method. Kingfisher uses the straight-line method of deprecation for book purposes and accelerated deprecia- tion (MACRS) for tax purposes . During 2019, the corporation distributed cash dividends of $80,000. Kingfisher's financial statements for 2019 are shown below and on the next page. connect Income Statement Income Gross sales $2.408,000 Sales returns and allowances (80.000) Net sales $2.328.000 Cost of goods sold 1920,000 Gross profit 51,400,000 Dividends received from stock investments in less-than-20%-owned U.S. corporations 12.000 Interest income State bonds $ 14,000 Certificates of deposit 10,000 24,000 $1,444,000 Total income Expenses Salaries--officers: $160,000 Nancy Trout Delores Lake 160,000 $320,000 Salaries-derical and sales 290,000 85,000 Taxes (state, local and payroll 56,000 Repairs and maintenance Interest expense: $ 12,000 Business loans 8,000 20,000 Loan to purchase state bonds 6,000 Advertising 68,000 Rental expense 40,000 Depreciation 15,000 Charitable contributions Employee benefit programs Premiums on term life insurance policies on lives of Nancy Trout and Delores Lake; Kingfisher is the 16.000 designated beneficiary 1940,000) Total expenses $ 504,000 Net Income before taxes (106,680) Federal income tax $ 397,320 Net Income per books "You are not provided enough detailed information to complete a form 4563 depreciation. If you solve this problem using intuit ProConnect, enter the amount of deprecation online 20 of Form 1120 not ded. notged. 24.000

Answer 1

Trial Balance
2019 (Amount in $)
Account	Debit (Amount in $)	Credit (Amount in $)
Cash	337,300	-
Trade Notes and Accounts Receivable	480,280	-
Inventories	1,012,000	-
State Bonds	160,000	-
Federal Income Tax Refund	1,320	-
Certificates of Deposit	140,000	-
Stock Investments	300,000	-
Building and Other Depreciable Assets	240,000	-
Accumulated Depreciation	-	128,800
Land	20,000	-
Other Assets	2,000	-
Accounts Payable	-	233,880
Other Current Liabilities	-	40,000
Mortgages	-	200,000
Capital Stock	-	500,000
Retained Earnings	-	1,272,900
Net Sales	-	2,328,000
COGS	920,000	-
Dividend Received	-	12,000
Interest Income	-	24,000
Salaries - Officers	320,000	-
Salaries - Clerical and Sales	290,000	-
Taxes	85,000	-
Repairs and Maintenance	56,000	-
Interest Expense	20,000	-
Advertising Expense	6,000	-
Rental expense	68,000	-
Depreciation	40,000	-
Charitable Contribution	15,000	-
Employee benefit programs	24,000	-
Premiums on term life insurance	16,000	-
Federal Income Tax	106,680	-
Dividend Distributed	80,000	-
Total	4,739,580	4,739,580