1120 Bedford, Inc. Case Study Facts: Data Entry

Bedford, Inc. Case Study Facts: Introduction

Print and Default Options

Most options can be set for all 1120 returns in your account by your Administrator. You can review and/or change these options on a return-by-return basis.

  1. Select General Information > Return and Print Options or Tax Defaults.
  2. Click each tab or select the appropriate folder to view the various processing options.

General Information

  1. Select Quick Track > Entity Information.

    OR

    Select General Information > Basic Return Information.
  2. Verify the name and address information.
  3. Verify Bedford’s EIN in the EIN field.
  4. Enter the date of incorporation: 06/30/1992.

When entering employer identification number and Social Security numbers, be sure to include the dashes.

Income and Deductions

Several income and deduction items have been entered for you.

  1. Select Quick Track > Income.

    OR

    Select Income and Deductions > Income.
  2. Enter the interest income from First National Bank.
  3. To enter the COGS, select Quick Track > Cost of Goods Sold.

    OR

    Select Income and Deductions > COGS/COOPS.
  4. Enter the applicable data.
  5. To enter the deduction items, select Quick Track > Deductions.

    OR

    Select Income and Deductions > Deductions > Detail.
  6. Scroll down to the Taxes Excluding Income group.
  7. Enter the amounts for real estate tax and payroll tax.
  8. Enter the New York state taxes under State and Local Taxes.

    The TCC column and the TRC Numbers in the Organizer are used in the Bridge software.

  9. To enter the Contributions, select Income and Deductions > Deductions > Contributions > Current Year Contributions tab.
  10. Verify the description and amount for the current year contributions.
  11. To enter the two assets purchased during 2019, select Quick Track > Depreciation Detail. This takes you to the Add new Asset box.
  12. Enter the first description. Repeat this step for the second asset.

    OR

    Select Deductions > Depreciation and Amortization > General Depreciation and Amortization > Asset Detail.
  13. Click Add new Asset and enter the first description.
  14. Repeat this step for the second asset.
  15. Enter the information in the appropriate fields for the two assets.

To enter summary depreciation information for assets acquired before 2007:

  1. Select General Depreciation and Amortization > Form 4562 Information > 4562 Overrides.
  2. Scroll down to locate the section titled Overrides for Other Depreciation, Listed Property, and Section 263A Costs.
  3. Enter the MACRS and Other Depreciation amounts in their respective fields.

Officers' Compensation

  1. To enter Officers’ Compensation, select Quick Track > Officer Compensation > Enter Officer Detail. This takes you to the Add new Officer box.
  2. Enter the Officer’s name, and click OK.
  3. Repeat these steps for the other officer.

    OR

    Select Income and Deductions > Deductions > Officers Compensation > Individual Officers > Add new Officer, and click OK.
  4. Enter the information for Officer 1.
  5. Select Add new Officer from the Officers’ Compensation drop-down list.
  6. Enter the Officer’s name, and click OK.
  7. Enter the information for Officer 2.

Balance Sheet

  1. Select Quick Track > Assets. This takes you to the Assets screen.

    OR

    Select Balance Sheet/M1-M2-M3 > Balance Sheet.
  2. Click the Assets tab.
  3. Scroll down to Other Current Assets.
  4. Enter the amount for the two prepaid items ending balances.
  5. Click the Stockholders’ Equity tab.
  6. Enter the amounts for Capital Stock - Common ending balances. No description is necessary.
  7. To accrue depreciation, click the Accrual Options tab.
  8. Verify that the Calculate the ending balance sheet amount option in the depreciation section is selected.
  9. To automatically calculate ending unappropriated retained earnings, select General Information > Return and Print Options.
  10. Click the Pg 1-5 Options tab.
  11. Click the fourth check box from the top in 1120 Options.

Schedule M-1

  1. To enter the M-1 items, select Balance Sheet/M1-M2-M3 > Schedule M1/M2.
  2. Scroll down to Expenses Recorded on Books Not Deducted in this Return.
  3. Go to the section Other Book Expense not on Return.
  4. Enter the Officers’ Life Insurance Premium here.
  5. Scroll down to Other Tax Deductions not on Book.
  6. Enter the data for Line 8b, Other here.

Schedule D

  1. Select Quick Track > Capital Gains/Losses.
  2. The Add new Description of Property box appears.
  3. Enter the description of the property.

    OR

    Select Gains and Losses > Capital Gains and Losses > Capital Asset Sale Detail > Add new Description of Property.
  4. Enter the Description of Property, and click OK.
  5. Enter the Schedule D information.

The date acquired (Print Only) and the date sold (Print Only) are used for print purposes only. To print the dates as Var (Various) or as Jan 01, you would use those fields. Other date fields require a month, day, and year to calculate properly, i.e. MM/DD/YYYY. Dashes or slashes are not needed.

Transmittal Letters and Filing Instructions

  1. To enter letter information, select Letters and Filing Instructions > General Options.
  2. Select Separate Transmittal Letter and Filing Instructions.

    The system default is to suppress letters.

  3. Select Letter Options.
  4. Select the Preparer Options button.
  5. Select 1120 Transmittal Letter on the left side of the screen.
  6. Select the option to print the statement: These return(s) were prepared from information provided by you or your representative. The preparation of tax returns does not include the independent verification of information used....

 

 

 

Case Study Facts/bedford_data_entry.htm/TY2019

Last Modified: 03/19/2020

Last System Build: 06/17/2021

©2019-2020 Thomson Reuters/Tax & Accounting.