Davy Jones provides the following information for Davy Jones’ Nautical Tours, LLC, a Limited Liability Company he operates with his business partner, William Turner
You’re required to prepare a 1065 U.S. Return of Partnership Income, a 1065 Statement 1 – Other Deductions, a 1065 Schedule K1 – Partner’s Share of Income, Deductions, Credits, etc., and a 1065 Schedule B1 – Information on Partners Owning 50% or More of a Partnership
Davy Jones’ Nautical Tours, LLC is operated by David K. Jones (SSN 000-00-0000) and William W. Turner (SSN 111-11-1111). They are each 50% members in the LLC.
Principal Business or Professional Activity Code; 114110
Principal business; Charter fishing tours
Employer Identification Number 867530950
Business address Home address (David K. Jones)
1008 North Harbor Drive 8700 Lake Murray Blvd #2
San Diego, CA 92103 San Diego, 92119
The cash accounting method and GAAP are utilized
The business started January 1st, 2012
Income Statement
December 31, 20XX
Revenue $400,950.00
Wages ($40,000.00)
Guaranteed Payments ($84,000.00)
FICA ($3,060.00)
FUTA ($85.00)
Depreciation ($85,000.00)
Interest ($43,900.00)
Advertising ($6,350.00)
Supplies ($23,795.00)
Legal fees ($6,940.00)
Insurance ($26,700.00)
Boat slip rental ($33,010.00)
Travel ($6,250.00)
Office expense ($7,940.00)
Parking fines ($1,350.00)
Lease expense ($3,650.00)
Net Profit $28,920.00
Balance Sheet
1/1/2016 12/31/2016
Cash $15,500.00 $22,010.00
Boat $850,000.00 $850,000.00
Accumulated Depreciation ($255,000.00) ($340,000.00)
Total Assets $610,500.00 $532,010.00
Loans $525,000.00 $417,590.00
Equity Investment $50,000.00 $50,000.00
Retained Earnings $35,500.00 $64,420.00
Total Equity + Liability $610,500.00 $532,010.00
You will be required to fill out and submit the following forms (find these forms online)
1065 U.S. Return of Partnership Income
1065 Statement 1 – Other Deductions – This is not online, you just need to show your OTHER DEDUCTIONS
1065 Schedule K1 – Partner’s Share of Income, Deductions, Credits, etc.
1065 Schedule B1 – Information on Partners Owning 50% or More of a Partnership
(although a tax preparer is required to fill out a 1065 Schedule K1 for each partner/member, you may fill out just one for Davy Jones only since you have his address)