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Question: Resources: Phoenix Medical Data Part 2, Phoenix Me... Resources: Phoenix Medical Data Part 2, Phoenix Medical Worksheet Student Part 2, 2014 F1120 Instructions, and
Question: Resources: Phoenix Medical Data Part 2, Phoenix Me... Resources: Phoenix Medical Data Part 2, Phoenix Medical Worksheet Student Part 2, 2014 F1120 Instructions, and 2014 F1120 Return Utilizing the spreadsheet and worksheet generated in Week 3, prepare pages 1 through 5 of Form 1120 - US Corporation Income Tax Return: Utilize PDF fill-in form. See additional information attached. University of Phoenix Material Phoenix Medical Worksheet Week 4: Prepare Form 1120: You are provided with the financial reports (2 year balance sheet and current year profit and loss in as a as a Microsoft Excel) along with the supplemental information that provides the details required to prepare a tax return for your new tax client Phoenix Medical, Inc. Fill out pages 1 through 5 of Form 1120 US Corporation Income Tax Return. Include as many details as you can. Utilize the PDF Form 1120 provided and consult the form instructions where needed. Upload the completed tax return to the assignment tab. Supplemental information for Phoenix Medical, Inc. Calendar year ending 12/31/2014: Page 1 Information: Company Name: Phoenix Medical, Inc. 1122 Three Ave. Phoenix, AZ 85001 B. EIN: 24-5678901 C. Date Incorporated: 3/27/2006 Page 2 Information: Dividends were received from Big Labs. Phoenix Medical holds a 15% ownership of Big Labs. Schedule K Information: Line 2. a. Business Activity Code: 621111 b. Business Activity: Medical c. Product or Services: Skin Care Line 3. Not a subsidiary. Line 4. a. Not owned by a foreign or domestic entity. b. Owned equally by three individuals (33.33%). Line 5. Not an owner of 20% or more of a foreign or domestic corporation or partnership. Line 6-11. No. Line 12. NOL carryforward of $1,535,624 is available to offset 2014 income. Line 13 & 14. No. Line 15. Yes and Yes. Line 16-18. No.
| Dec 31, 14 | Dec 31, 13 | $ Change | |||||||
| ASSETS | |||||||||
| Current Assets | |||||||||
| Checking/Savings | |||||||||
| 10001 Checking | 609,842.00 | 277,131.00 | 332,711.00 | ||||||
| 10010 Savings | 557,392.23 | 325,541.23 | 231,851.00 | ||||||
| 10020 Cash Maximizer | 558,380.05 | 69,672.05 | 488,708.00 | ||||||
| Total Checking/Savings | 1,725,614.28 | 672,344.28 | 1,053,270.00 | ||||||
| Accounts Receivable | |||||||||
| 11000 Accounts Receivable | 260,990.00 | 826,113.00 | -565,123.00 | ||||||
| Total Accounts Receivable | 260,990.00 | 826,113.00 | -565,123.00 | ||||||
| Other Current Assets | |||||||||
| 18100 Loan to Shareholder | 75,000.00 | 0.00 | 75,000.00 | ||||||
| Total Other Current Assets | 75,000.00 | 0.00 | 75,000.00 | ||||||
| Total Current Assets | 2,061,604.28 | 1,498,457.28 | 563,147.00 | ||||||
| Fixed Assets | |||||||||
| 15000 Furniture and Equipment | 40,316.00 | 40,316.00 | 0.00 | ||||||
| 15500 Leasehold Improvements | 506,889.00 | 506,889.00 | 0.00 | ||||||
| 16100 Medical Equipment | 1,399,776.00 | 1,129,888.00 | 269,888.00 | ||||||
| 17000 Accumulated Depreciation | -1,568,773.00 | -1,240,071.00 | -328,702.00 | ||||||
| Total Fixed Assets | 378,208.00 | 437,022.00 | -58,814.00 | ||||||
| Other Assets | |||||||||
| 18001 Investment in Big Labs | 3,206,518.00 | 2,306,518.00 | 900,000.00 | ||||||
| 18050 Investment in R&D Company | 866,507.20 | 364,352.20 | 502,155.00 | ||||||
| Total Other Assets | 4,073,025.20 | 2,670,870.20 | 1,402,155.00 | ||||||
| TOTAL ASSETS | 6,512,837.48 | 4,606,349.48 | 1,906,488.00 | ||||||
| LIABILITIES & EQUITY | |||||||||
| Liabilities | |||||||||
| Current Liabilities | |||||||||
| Accounts Payable | |||||||||
| 20001 Accounts Payable | 93,648.00 | 107,245.00 | -13,597.00 | ||||||
| Total Accounts Payable | 93,648.00 | 107,245.00 | -13,597.00 | ||||||
| Credit Cards | |||||||||
| 20100 Credit Cards | 39,065.51 | 34,742.51 | 4,323.00 | ||||||
| Total Credit Cards | 39,065.51 | 34,742.51 | 4,323.00 | ||||||
| Other Current Liabilities | |||||||||
| 20200 Accrued Salaries | 28,953.00 | 26,375.00 | 2,578.00 | ||||||
| Total Other Current Liabilities | 28,953.00 | 26,375.00 | 2,578.00 | ||||||
| Total Current Liabilities | 161,666.51 | 168,362.51 | -6,696.00 | ||||||
| Long Term Liabilities | |||||||||
| 28001 Business Loan | 1,207,401.72 | 1,333,423.72 | -126,022.00 | ||||||
| Total Long Term Liabilities | 1,207,401.72 | 1,333,423.72 | -126,022.00 | ||||||
| Total Liabilities | 1,369,068.23 | 1,501,786.23 | -132,718.00 | ||||||
| Equity | |||||||||
| 30100 Capital Stock | 1,000.00 | 1,000.00 | 0.00 | ||||||
| 31400 Shareholder Distributions | -400,000.00 | 0.00 | -400,000.00 | ||||||
| 32000 Retained Earnings | 3,103,563.25 | 3,103,563.25 | 0.00 | ||||||
| Net Income | 2,439,206.00 | 0.00 | 2,439,206.00 | ||||||
| Total Equity | 5,143,769.25 | 3,104,563.25 | 2,039,206.00 | ||||||
| TOTAL LIABILITIES & EQUITY | 6,512,837.48 | 4,606,349.48 | 1,906,488.00 | ||||||
| Unadjusted Balance | Book Adjustments | Adjusted Book Balance | Tax Adjustments | Adjusted Tax Balance | ||||||||||||||||
| Debit | Credit | Debit | Credit | Debit | Credit | Debit | Credit | Debit | Credit | |||||||||||
| 10001 Checking | 609,842.00 | 609,842.00 | 609,842.00 | |||||||||||||||||
| 10010 Savings | 557,392.23 | 557,392.23 | 557,392.23 | |||||||||||||||||
| 10020 Cash Maximizer | 558,380.05 | 558,380.05 | 558,380.05 | |||||||||||||||||
| 11000 Accounts Receivable | 260,990.00 | 260,990.00 | 260,990.00 | |||||||||||||||||
| 18100 Loan to Shareholder | Adj 1 | 75,000.00 | 75,000.00 | 75,000.00 | ||||||||||||||||
| 15000 Furniture and Equipment | 40,316.00 | 40,316.00 | 40,316.00 | |||||||||||||||||
| 15500 Leasehold Improvements | 506,889.00 | 506,889.00 | 506,889.00 | |||||||||||||||||
| 16100 Medical Equipment | 1,699,776.00 | Adj 1 | 300,000.00 | 1,399,776.00 | 1,399,776.00 | |||||||||||||||
| 17000 Accumulated Depreciation | 1,240,071.00 | Adj 1 & 2 | 328,702.00 | 1,568,773.00 | 1,568,773.00 | |||||||||||||||
| 18001 Investment in Big Labs | 3,206,518.00 | 3,206,518.00 | 3,206,518.00 | |||||||||||||||||
| 18050 Investment in R&D Company | 866,507.20 | 866,507.20 | 866,507.20 | |||||||||||||||||
| 20001 Accounts Payable | 122,601.00 | r | 28,953.00 | 93,648.00 | 93,648.00 | |||||||||||||||
| 20100 Credit Cards | 39,065.51 | 39,065.51 | 39,065.51 | |||||||||||||||||
| 20200 Accrued Salaries | 0.00 | r | 28,953.00 | 28,953.00 | 28,953.00 | |||||||||||||||
| 28001 Business Loan | 1,207,401.72 | 1,207,401.72 | 1,207,401.72 | |||||||||||||||||
| 30100 Capital Stock | 1,000.00 | 1,000.00 | 1,000.00 | |||||||||||||||||
| 31400 Shareholder Distributions | 400,000.00 | 400,000.00 | 400,000.00 | |||||||||||||||||
| 32000 Retained Earnings | 3,103,563.25 | 3,103,563.25 | 3,103,563.25 | |||||||||||||||||
| 43700 Fee for Service Income | 5,050,583.00 | 5,050,583.00 | a | 565,123.00 | 5,615,706.00 | |||||||||||||||
| 47300 Refunds | 17,633.00 | 17,633.00 | 17,633.00 | |||||||||||||||||
| 60000 Advertising and Promotion | 1,252.00 | 1,252.00 | 1,252.00 | |||||||||||||||||
| 60200 Automobile Expense | 11,961.00 | 11,961.00 | 11,961.00 | |||||||||||||||||
| 60400 Bank Service Charges | 8,808.00 | 8,808.00 | 8,808.00 | |||||||||||||||||
| 61000 Business Licenses and Permits | 5,611.00 | 5,611.00 | 5,611.00 | |||||||||||||||||
| 61100 Charitable Contributions (Cash) | 60,000.00 | 60,000.00 | b | 40,000.00 | 100,000.00 | |||||||||||||||
| 61700 Computer and Internet Expenses | 13,575.00 | 13,575.00 | 13,575.00 | |||||||||||||||||
| 62400 Depreciation Expense | Adj 2 | 628,702.00 | 628,702.00 | 628,702.00 | ||||||||||||||||
| 62500 Dues and Subscriptions | 8,327.00 | 8,327.00 | 8,327.00 | |||||||||||||||||
| 62600 Equipment Rental | 201,106.00 | 201,106.00 | 201,106.00 | |||||||||||||||||
| 62600 Equipment Rental:62610 Laser Facility Rent | 14,979.00 | 14,979.00 | 14,979.00 | |||||||||||||||||
| 63300 Insurance Expense | 55,356.00 | 55,356.00 | 55,356.00 | |||||||||||||||||
| 63400 Interest Expense | 63,678.00 | 63,678.00 | 63,678.00 | |||||||||||||||||
| 63600 Laboratory Testing Fees | 121,653.00 | 121,653.00 | 121,653.00 | |||||||||||||||||
| 64300 Meals and Entertainment | 16,725.00 | 16,725.00 | c | 8,362.50 | 8,362.50 | |||||||||||||||
| 64400 Medical Records and Supplies | 103,456.00 | 103,456.00 | 103,456.00 | |||||||||||||||||
| 66700 Professional Fees | 123,945.00 | 123,945.00 | 123,945.00 | |||||||||||||||||
| 67200 Repairs and Maintenance | 18,855.00 | 18,855.00 | 18,855.00 | |||||||||||||||||
| 67800 Salaries and Wages | 321,580.00 | 321,580.00 | 321,580.00 | |||||||||||||||||
| 67800 Salaries and Wages:67810 Officer Compensation | 940,000.00 | 940,000.00 | 940,000.00 | |||||||||||||||||
| 68000 Taxes:68010 Payroll Taxes | 206,103.00 | 206,103.00 | 206,103.00 | |||||||||||||||||
| 68000 Taxes:68020 State Tax | 35,041.00 | 35,041.00 | d | 4,398.00 | 30,643.00 | |||||||||||||||
| 68500 Uniforms | 16,121.00 | 16,121.00 | 16,121.00 | |||||||||||||||||
| 68600 Utilities | 30,364.00 | 30,364.00 | 30,364.00 | |||||||||||||||||
| 70200 Interest Income | 833.00 | 833.00 | 833.00 | |||||||||||||||||
| 70222 Tax Exempt Interest | 17,621.00 | 17,621.00 | e | 17,621.00 | 0.00 | |||||||||||||||
| 70300 Sublease Rents | 240,000.00 | 240,000.00 | 240,000.00 | |||||||||||||||||
| 71000 Dividends | 80,000.00 | 80,000.00 | 80,000.00 | |||||||||||||||||
| 75000 Gain on Sale of Assets | Adj 1 | 75,000.00 | 75,000.00 | 75,000.00 | ||||||||||||||||
| M-1 Accrual to Cash - Accounts Payable | 0.00 | 0.00 | f | 13,597.00 | 13,597.00 | |||||||||||||||
| TOTAL | 11,102,739.48 | 11,102,739.48 | 732,655.00 | 732,655.00 | 11,506,441.48 | 11,506,441.48 | 71,218.00 | 577,883.50 | 11,547,277.98 | 12,053,943.48 | ||||||||||
| Book Income | 2,439,206 | Tax Income | 2,945,872 | |||||||||||||||||
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The Quality Audit Handbook
Authors: Asq Quality Audit Division, J. P. Russell
2nd Edition
087389460X, 978-0873894609
