YearClear · Preparer Package Report Tax Year 2022 · Sample data

Harbor & Pine Studio LLC yearclear.com

Executive summary

This package presents the complete, reconciled 2022 books for Harbor & Pine Studio LLC, rebuilt from bank statements and confirmed judgment calls. All 36 statement periods across three accounts reconcile to their ending balances. The seven reports that follow — Profit & Loss, Balance Sheet, Cash Flow, Trial Balance, Tax Details, Contractor Documentation, and the Form 1120-S data package — are internally consistent and ready for the preparer to review and file from.

Three items required owner judgment during the year; each was confirmed with the context preserved and is annotated for the preparer. No estimates, no plug entries, no hidden gaps.

01Profit & Loss

January 1 – December 31, 2022 · Accrual basis · Reconciled to statement periods

Account	Amount	% of revenue
Design services	$348,200	84.3%
Retainers & licensing	$64,660	15.7%
Total revenue	$412,860	100%
Contractor payments	$87,400	21.2%
Wages	$118,000	28.6%
Payroll taxes	$11,800	2.9%
Employee benefits	$12,800	3.1%
Rent (incl. $6,500 related party)	$33,500	8.1%
Utilities	$5,400	1.3%
Software subscriptions	$14,900	3.6%
Equipment & depreciation	$11,240	2.7%
Insurance	$8,400	2.0%
Professional fees	$6,900	1.7%
Marketing	$4,300	1.0%
Travel & meals	$2,450	0.6%
Bank & merchant fees	$1,150	0.3%
Total expenses	$318,240	77.1%
Net income	$94,620	22.9%

02Balance Sheet

As of December 31, 2022 · Comparative to prior year · Tied to statement ending balances

Account	Dec 31, 2022	Dec 31, 2021	Change
Cash — Business Checking ···4821	$41,320	$18,240	+$23,080
Cash — Business Savings ···3067	$22,860	$12,050	+$10,810
Accounts receivable	$28,400	$21,300	+$7,100
Equipment, net of depreciation	$93,840	$74,900	+$18,940
Total assets	$186,420	$126,490	+$59,930
Business Card ···9944	$8,140	$6,900	+$1,240
Accrued payroll & taxes	$11,260	$9,470	+$1,790
Equipment loan	$24,600	$32,320	−$7,720
Total liabilities	$44,000	$48,690	−$4,690
Owner contributions	$18,000	$0	+$18,000
Retained earnings, beginning	$77,800	$77,800	—
Owner distributions	($48,000)	$0	−$48,000
Net income — 2022	$94,620	—	—
Total equity	$142,420	$77,800	+$64,620
Total liabilities & equity	$186,420	$126,490	+$59,930

03Cash Flow

January 1 – December 31, 2022 · Indirect method · Ties to bank statement balances

Item	Amount
Net income	$94,620
Depreciation	$11,240
Increase in accounts receivable	($7,100)
Increase in card balance	$1,240
Increase in accrued payroll & taxes	$1,790
Net cash from operating activities	$101,790
Equipment purchases	($30,180)
Net cash used in investing activities	($30,180)
Equipment loan principal payments	($7,720)
Owner contributions	$18,000
Owner distributions	($48,000)
Net cash used in financing activities	($37,720)
Cash at January 1, 2022	$30,290
Net change in cash	$33,890
Cash at December 31, 2022	$64,180

04Trial Balance

As of December 31, 2022 · Debits equal credits at $593,820 across 26 accounts

Account	Debit	Credit
1010 · Business Checking ···4821	$41,320
1020 · Business Savings ···3067	$22,860
1200 · Accounts receivable	$28,400
1500 · Equipment	$135,000
1510 · Accumulated depreciation		$41,160
2010 · Business Card ···9944		$8,140
2100 · Accrued payroll & taxes		$11,260
2500 · Equipment loan		$24,600
3010 · Owner contributions		$18,000
3020 · Owner distributions	$48,000
3900 · Retained earnings, beginning		$77,800
4010 · Design services		$348,200
4020 · Retainers & licensing		$64,660
5010 · Contractor payments	$87,400
5100 · Wages	$118,000
5110 · Payroll taxes	$11,800
5120 · Employee benefits	$12,800
5200 · Rent	$33,500
5210 · Utilities	$5,400
5300 · Software subscriptions	$14,900
5310 · Depreciation expense	$11,240
5400 · Insurance	$8,400
5410 · Professional fees	$6,900
5500 · Marketing	$4,300
5510 · Travel & meals	$2,450
5600 · Bank & merchant fees	$1,150
Total	$593,820	$593,820

05Tax Details

Every account mapped to its Form 1120-S line · Judgment calls annotated for the preparer

Account	Amount	Form 1120-S line
Design services	$348,200	Line 1a · Gross receipts
Retainers & licensing	$64,660	Line 1a · Gross receipts
Wages	$118,000	Line 8 · Salaries and wages
Rent (incl. related party — see note)	$33,500	Line 11 · Rents
Payroll taxes	$11,800	Line 12 · Taxes and licenses
Depreciation	$11,240	Line 14 · Depreciation
Contractor payments, benefits, software, insurance, fees, utilities, marketing, travel	$143,700	Line 19 · Other deductions
Total deductions	$318,240	Line 20
Ordinary business income	$94,620	Line 21

Preparer notes: related-party rent of $6,500 (Patel Family Trust, disclosure consideration); meals portion of $1,180 subject to 50% limitation, mapped gross; 1099-NEC totals reconcile to Contractor Documentation.

06Contractor Documentation

1099-NEC register · Every payment confirmed by the owner before inclusion

Contractor	Payments	Total paid	W-9	1099-NEC
Rivera Drafting LLC · CAD & production drawings	14	$24,600	✓ On file	✓ Issued
Beacon Web Development · Client site builds	9	$19,500	✓ On file	✓ Issued
Calloway Media · Video & motion	7	$18,750	✓ On file	✓ Issued
Marsh & Co. Copywriting · Brand & proposal copy	11	$12,350	✓ On file	✓ Issued
J. Chen Photography · Project photography	5	$9,800	✓ On file	✓ Issued
Northstar Electric · Studio build-out wiring	1	$2,400	✓ On file	✓ Issued
Total	47	$87,400

07Entity form — Form 1120-S data

Reference data for the preparer — not a filed return

Line	Description	Amount
1a / 6	Gross receipts · Total income	$412,860
8	Salaries and wages	$118,000
11	Rents	$33,500
12	Taxes and licenses	$11,800
14	Depreciation	$11,240
19	Other deductions (statement attached)	$143,700
20	Total deductions	$318,240
21	Ordinary business income	$94,620
K-1	Ordinary business income to shareholder	$94,620
K-16d	Distributions	$48,000
L	Schedule L · Total assets, end of year	$186,420

Judgment trail