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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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