DOgstein Computer Corporations 1515 Pony Farm Lane, Richmond, VA 23261, was formed on January 2, 2000. The Dog Corp is in the business of retailing computer equipment and accessories. The corporation’s business code is 342299 and its employer identification number 02-0806200.
Stock ownership and officer compensation are as follows:
B. Lamp #347-54-1212 100% $40,000.
B. Lamp devotes 100 percent of his time to the business, and is employed as the company’s only officer. The corporation had the following items of income and expenses for the year.
The corporation made cash distributions of $3500. TO its sole shareholder on March 1, 2011, and $3000 on April 13, 2011. The distributions were made in proportion to stockholdings.
Estimated tax payment of $20,000. Each were made on April 12, June 13, and December 13. The tax payments were based on prior year’s tax liability of $59,520.
The corporation had the following items of income and expenses for the current year:
Sales $390,000
Sales Returns and Allowance 2,000
Inventory 1/1/11 12,000
Purchases 110,000
Inventory 12/31/11 14,000
Salaries and wages:
Officers 40,000
Other 15,000
Rent Expenses 12,000
Dividend Income 3,000
Taxes 8,000
Contributions 1,400
Interest-City of Norfolk Bonds 700
Other interest 1000
Depreciation 10,000
Charitable contributions 7,900
Wages 30,000
Professional Fees Paid 2,000
Advertising expense 5,000
Premiums paid on key life insurance 4,500
Financial Balance Sheet 1/1/11 12/31/11
Cash 5,600 2,850
Accts. Rec 65,000 53,062
Inventories 12,000 14,000
Investments 5,000 5,000
Depreciable assets 75,000 80,000
Accum. Depreciation (10,000) (20,000)
Accts. Payble 20,000 25,000
Capital Stock 50,000 50,000
Retained Earnings-Unappropriated 66,200 ?