12:41 PM 10/26/15 Accrual Basis Phoenix Medical Adjusted Trial Balance January through December 2014 Unadjusted Balance Debit Credit 10001 · Checking 609,842.00 10010 · Savings 557,392.23 10020 · Cash Maximizer 558,380.05 11000 · Accounts Receivable 260,990.00 18100 · Loan to Shareholder 15000 · Furniture and Equipment 15500 · Leasehold Improvements 16100 · Medical Equipment Adj 1 40,316.00 506,889.00 1,699,776.00 17000 · Accumulated Depreciation 18001 · Investment in Big Labs 18050 · Investment in R&D Company 1,240,071.00 3,206,518.00 866,507.20 20001 · Accounts Payable 122,601.00 20100 · Credit Cards 20200 · Accrued Salaries 0.00 1,207,401.72 30100 · Capital Stock 1,000.00 400,000.00 32000 · Retained Earnings 3,103,563.25 43700 · Fee for Service Income 5,050,583.00 47300 · Refunds 60000 · Advertising and Promotion 60200 · Automobile Expense 17,633.00 1,252.00 11,961.00 60400 · Bank Service Charges 8,808.00 61000 · Business Licenses and Permits 5,611.00 61100 · Charitable Contributions (Cash) 60,000.00 61700 · Computer and Internet Expenses 13,575.00 62400 · Depreciation Expense 62500 · Dues and Subscriptions 62600 · Equipment Rental Adj 2 8,327.00 201,106.00 62600 · Equipment Rental:62610 · Laser Facility Rent 14,979.00 63300 · Insurance Expense 55,356.00 63400 · Interest Expense 63,678.00 63600 · Laboratory Testing Fees 64300 · Meals and Entertainment 121,653.00 16,725.00 64400 · Medical Records and Supplies 103,456.00 66700 · Professional Fees 123,945.00 67200 · Repairs and Maintenance 18,855.00 67800 · Salaries and Wages 321,580.00 67800 · Salaries and Wages:67810 · Officer Compensation 940,000.00 68000 · Taxes:68010 · Payroll Taxes 206,103.00 68000 · Taxes:68020 · State Tax 35,041.00 68500 · Uniforms 16,121.00 68600 · Utilities 30,364.00 70200 · Interest Income r 39,065.51 28001 · Business Loan 31400 · Shareholder Distributions Book Adjustments 833.00 Page 1 of 16 12:41 PM 10/26/15 Accrual Basis Phoenix Medical Adjusted Trial Balance January through December 2014 Unadjusted Balance Debit 70222 · Tax Exempt Interest Book Adjustments Credit 17,621.00 70300 · Sublease Rents 240,000.00 71000 · Dividends 80,000.00 75000 · Gain on Sale of Assets M-1 Accrual to Cash - Accounts Payable TOTAL 11,102,739.48 11,102,739.48 Book Adjustments Adj 1 Sale of fixed assets Adj 2 2015 Depreciation r Reclass of accounts payable Tax Adjustments a Accrual to Cash Adjustment - Accounts Receivable b Charitable contributions carryover c 50% Meals and Entertainment d Non-deductible penalties e Tax Exempt interest f Accrual to Cash Adjustment - Accounts Payable Page 2 of 16 12:41 PM 10/26/15 Accrual Basis Phoenix Medical Adjusted Trial Balance January through December 2014 Book Adjustments Unadjusted Balance Debit Credit Adjusted Book Balance Debit 10001 · Checking 609,842.00 10010 · Savings 557,392.23 10020 · Cash Maximizer 558,380.05 11000 · Accounts Receivable 18100 · Loan to Shareholder 260,990.00 75,000.00 75,000.00 15000 · Furniture and Equipment 40,316.00 15500 · Leasehold Improvements 16100 · Medical Equipment 17000 · Accumulated Depreciation 506,889.00 Adj 1 300,000.00 Adj 1 & 2 328,702.00 18001 · Investment in Big Labs 3,206,518.00 18050 · Investment in R&D Company 20001 · Accounts Payable 1,399,776.00 866,507.20 28,953.00 20100 · Credit Cards 20200 · Accrued Salaries r 28,953.00 28001 · Business Loan 30100 · Capital Stock 31400 · Shareholder Distributions 400,000.00 32000 · Retained Earnings 43700 · Fee for Service Income 47300 · Refunds 17,633.00 60000 · Advertising and Promotion 1,252.00 60200 · Automobile Expense 11,961.00 60400 · Bank Service Charges 8,808.00 61000 · Business Licenses and Permits 5,611.00 61100 · Charitable Contributions (Cash) 60,000.00 61700 · Computer and Internet Expenses 62400 · Depreciation Expense 62500 · Dues and Subscriptions 62600 · Equipment Rental 13,575.00 628,702.00 628,702.00 8,327.00 201,106.00 62600 · Equipment Rental:62610 · Laser Facility Rent 14,979.00 63300 · Insurance Expense 55,356.00 63400 · Interest Expense 63,678.00 63600 · Laboratory Testing Fees 64300 · Meals and Entertainment 121,653.00 16,725.00 64400 · Medical Records and Supplies 103,456.00 66700 · Professional Fees 123,945.00 67200 · Repairs and Maintenance 18,855.00 67800 · Salaries and Wages 321,580.00 67800 · Salaries and Wages:67810 · Officer Compensation 940,000.00 68000 · Taxes:68010 · Payroll Taxes 206,103.00 68000 · Taxes:68020 · State Tax 35,041.00 68500 · Uniforms 16,121.00 68600 · Utilities 30,364.00 70200 · Interest Income Page 3 of 16 12:41 PM 10/26/15 Accrual Basis Phoenix Medical Adjusted Trial Balance January through December 2014 Book Adjustments Unadjusted Balance Debit Credit Adjusted Book Balance Debit 10001 · Tax Checking 70222 Exempt Interest 70300 · Sublease Rents 71000 · Dividends 75000 · Gain on Sale of Assets Adj 1 75,000.00 M-1 Accrual to Cash - Accounts Payable TOTAL 0.00 732,655.00 732,655.00 11,506,441.48 Book Income Book Adjustments Adj 1 Sale of fixed assets Adj 2 2015 Depreciation r Reclass of accounts payable Tax Adjustments a Accrual to Cash Adjustment - Accounts Receivable b Charitable contributions carryover c 50% Meals and Entertainment d Non-deductible penalties e Tax Exempt interest f Accrual to Cash Adjustment - Accounts Payable Page 4 of 16 12:41 PM 10/26/15 Accrual Basis Phoenix Medical Adjusted Trial Balance January through December 2014 Adjusted Book Balance Unadjusted TaxBalance Adjustments Credit Debit Adjusted Ta Credit 10001 · Checking 10010 · Savings 10020 · Cash Maximizer 11000 · Accounts Receivable 18100 · Loan to Shareholder 15000 · Furniture and Equipment 15500 · Leasehold Improvements 16100 · Medical Equipment 17000 · Accumulated Depreciation 1,568,773.00 18001 · Investment in Big Labs 18050 · Investment in R&D Company 20001 · Accounts Payable 93,648.00 20100 · Credit Cards 39,065.51 20200 · Accrued Salaries 28,953.00 28001 · Business Loan 30100 · Capital Stock 1,207,401.72 1,000.00 31400 · Shareholder Distributions 32000 · Retained Earnings 3,103,563.25 43700 · Fee for Service Income 5,050,583.00 a 68,364.50 c 8,362.50 d 4,389.00 47300 · Refunds 60000 · Advertising and Promotion 60200 · Automobile Expense 60400 · Bank Service Charges 61000 · Business Licenses and Permits 61100 · Charitable Contributions (Cash) b 40,000.00 61700 · Computer and Internet Expenses 62400 · Depreciation Expense 62500 · Dues and Subscriptions 62600 · Equipment Rental 62600 · Equipment Rental:62610 · Laser Facility Rent 63300 · Insurance Expense 63400 · Interest Expense 63600 · Laboratory Testing Fees 64300 · Meals and Entertainment 64400 · Medical Records and Supplies 66700 · Professional Fees 67200 · Repairs and Maintenance 67800 · Salaries and Wages 67800 · Salaries and Wages:67810 · Officer Compensation 68000 · Taxes:68010 · Payroll Taxes 68000 · Taxes:68020 · State Tax 68500 · Uniforms 68600 · Utilities 70200 · Interest Income 833.00 Page 5 of 16 12:41 PM 10/26/15 Accrual Basis Phoenix Medical Adjusted Trial Balance January through December 2014 Adjusted Book Balance Unadjusted TaxBalance Adjustments Credit 10001 · Tax Checking 70222 Exempt Interest 70300 · Sublease Rents Debit 17,621.00 80,000.00 75000 · Gain on Sale of Assets 75,000.00 TOTAL 12,523.00 f 28,593.00 Credit 240,000.00 71000 · Dividends M-1 Accrual to Cash - Accounts Payable e Adjusted Ta 0.00 11,506,441.48 81,116.00 81,116.00 2,439,206 Book Adjustments Adj 1 Sale of fixed assets Adj 2 2015 Depreciation r Reclass of accounts payable Tax Adjustments a Accrual to Cash Adjustment - Accounts Receivable b Charitable contributions carryover c 50% Meals and Entertainment d Non-deductible penalties e Tax Exempt interest f Accrual to Cash Adjustment - Accounts Payable Page 6 of 16 12:41 PM 10/26/15 Accrual Basis Phoenix Medical Adjusted Trial Balance January through December 2014 Adjusted Unadjusted Tax Balance Balance Debit 10001 · Checking 609,842.00 10010 · Savings 557,392.23 10020 · Cash Maximizer 558,380.05 11000 · Accounts Receivable 260,990.00 18100 · Loan to Shareholder 75,000.00 15000 · Furniture and Equipment 40,316.00 15500 · Leasehold Improvements 16100 · Medical Equipment 506,889.00 1,399,776.00 17000 · Accumulated Depreciation 18001 · Investment in Big Labs 18050 · Investment in R&D Company Credit 1,568,773.00 3,206,518.00 866,507.20 20001 · Accounts Payable 93,648.00 20100 · Credit Cards 39,065.51 20200 · Accrued Salaries 28,953.00 28001 · Business Loan 1,207,401.72 30100 · Capital Stock 31400 · Shareholder Distributions 1,000.00 400,000.00 32000 · Retained Earnings 3,103,563.25 43700 · Fee for Service Income 5,118,947.50 47300 · Refunds 60000 · Advertising and Promotion 60200 · Automobile Expense 17,633.00 1,252.00 11,961.00 60400 · Bank Service Charges 8,808.00 61000 · Business Licenses and Permits 5,611.00 61100 · Charitable Contributions (Cash) 100,000.00 61700 · Computer and Internet Expenses 62400 · Depreciation Expense 62500 · Dues and Subscriptions 62600 · Equipment Rental 13,575.00 628,702.00 8,327.00 201,106.00 62600 · Equipment Rental:62610 · Laser Facility Rent 14,979.00 63300 · Insurance Expense 55,356.00 63400 · Interest Expense 63,678.00 63600 · Laboratory Testing Fees 64300 · Meals and Entertainment 121,653.00 8,362.50 64400 · Medical Records and Supplies 103,456.00 66700 · Professional Fees 123,945.00 67200 · Repairs and Maintenance 18,855.00 67800 · Salaries and Wages 321,580.00 67800 · Salaries and Wages:67810 · Officer Compensation 940,000.00 68000 · Taxes:68010 · Payroll Taxes 206,103.00 68000 · Taxes:68020 · State Tax 30,652.00 68500 · Uniforms 16,121.00 68600 · Utilities 30,364.00 70200 · Interest Income 833.00 Page 7 of 16 12:41 PM 10/26/15 Accrual Basis Phoenix Medical Adjusted Trial Balance January through December 2014 Adjusted Unadjusted Tax Balance Balance Debit 10001 · Tax Checking 70222 Exempt Interest 5,098.00 70300 · Sublease Rents 240,000.00 71000 · Dividends 80,000.00 75000 · Gain on Sale of Assets M-1 Accrual to Cash - Accounts Payable TOTAL Credit 75,000.00 28,593.00 11,562,282.98 Tax Income 11,562,282.98 2,439,206 Book Adjustments Adj 1 Sale of fixed assets Adj 2 2015 Depreciation r Reclass of accounts payable Tax Adjustments a Accrual to Cash Adjustment - Accounts Receivable b Charitable contributions carryover c 50% Meals and Entertainment d Non-deductible penalties e Tax Exempt interest f Accrual to Cash Adjustment - Accounts Payable Page 8 of 16 2:20 PM 10/26/15 Accrual Basis Phoenix Medical Adjusting Journal Entries January through December 2014 Date 12/31/2015 Num 2015 Adj 1 Memo to sell obsolete equipment to sell obsolete equipment to sell obsolete equipment to sell obsolete equipment 12/31/2015 2015 Adj 2 to record 2015 depreciation on assets placed in service prior to 2015 to record 2015 depreciation on assets placed in service prior to 2015 to record Sec. 179 expense to record Sec. 179 expense to record depreciation on assets placed in service in 2015 to record depreciation on assets placed in service in 2015 TOTAL Page 9 of 16 2:20 PM 10/26/15 Accrual Basis Phoenix Medical Adjusting Journal Entries January through December 2014 Account 17000 · Accumulated Depreciation Debit 300,000.00 16100 · Medical Equipment 18100 · Loan to Shareholder 300,000.00 75,000.00 75000 · Gain on Sale of Assets 75,000.00 375,000.00 62400 · Depreciation Expense 375,000.00 86,769.00 17000 · Accumulated Depreciation 62400 · Depreciation Expense Credit 86,769.00 500,000.00 17000 · Accumulated Depreciation 500,000.00 62400 · Depreciation Expense 17000 · Accumulated Depreciation TOTAL 586,769.00 586,769.00 961,769.00 961,769.00 Page 10 of 16 12:53 PM 10/26/15 Accrual Basis Phoenix Medical Balance Sheet As of December 31, 2014 Dec 31, 15 Dec 31, 14 $ 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 1,725,614.28 672,344.28 1,053,270.00 260,990.00 826,113.00 -565,123.00 260,990.00 826,113.00 -565,123.00 75,000.00 0.00 75,000.00 75,000.00 0.00 75,000.00 2,061,604.28 1,498,457.28 563,147.00 40,316.00 40,316.00 0.00 Total Checking/Savings Accounts Receivable 11000 · Accounts Receivable Total Accounts Receivable Other Current Assets 18100 · Loan to Shareholder Total Other Current Assets Total Current Assets Fixed Assets 15000 · Furniture and Equipment 15500 · Leasehold Improvements 16100 · Medical Equipment 17000 · Accumulated Depreciation Total Fixed Assets 506,889.00 506,889.00 0.00 1,399,776.00 1,129,888.00 269,888.00 -1,568,773.00 -1,240,071.00 -328,702.00 378,208.00 437,022.00 -58,814.00 3,206,518.00 2,306,518.00 900,000.00 Other Assets 18001 · Investment in Big Labs 18050 · Investment in R&D Company 866,507.20 364,352.20 502,155.00 4,073,025.20 2,670,870.20 1,402,155.00 6,512,837.48 4,606,349.48 1,906,488.00 93,648.00 107,245.00 -13,597.00 93,648.00 107,245.00 -13,597.00 39,065.51 34,742.51 4,323.00 39,065.51 34,742.51 4,323.00 20200 · Accrued Salaries 28,953.00 26,375.00 2,578.00 Total Other Current Liabilities 28,953.00 26,375.00 2,578.00 161,666.51 168,362.51 -6,696.00 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 1,369,068.23 1,501,786.23 -132,718.00 1,000.00 1,000.00 0.00 Total Other Assets TOTAL ASSETS LIABILITIES & EQUITY Liabilities Current Liabilities Accounts Payable 20001 · Accounts Payable Total Accounts Payable Credit Cards 20100 · Credit Cards Total Credit Cards Other Current Liabilities Total Current Liabilities Long Term Liabilities Total Liabilities Equity 30100 · Capital Stock Page 11 of 16 12:53 PM 10/26/15 Accrual Basis Phoenix Medical Balance Sheet As of December 31, 2014 Dec 31, 15 31400 · Shareholder Distributions 32000 · Retained Earnings Net Income Total Equity TOTAL LIABILITIES & EQUITY Dec 31, 14 -400,000.00 0.00 $ Change -400,000.00 3,103,563.25 3,103,563.25 0.00 2,439,206.00 0.00 2,439,206.00 5,143,769.25 3,104,563.25 2,039,206.00 6,512,837.48 4,606,349.48 1,906,488.00 Page 12 of 16 a. Provide a journal entry to calculate the gain on sale and adjust the fixed asset and accumulated depreciation accounts. First, we must compare the cash received to the carrying value of the equipment. This fixed asset was depreciated “fully” as mentioned above. Formula as follows: • Original Price-Accumulated Depreciation= Carrying Amount • Carrying Amount- Sale Price (Remaining gain/loss) A gain will result into a debit in the depreciation account of the equipment, credit on gain of sale and a credit to the asset. A loss will require a debit entry to the depreciation account, debit on the loss on sale of assets and a credit to the asset. Phoenix Medical has a machine that originally cost $300,000 Debit of $628,702 Depreciation Expense Debit of $75,000 to Loan to Shareholder Credit Medical Equipment $328,702 Credit of $300,000 Accumulated Depreciation Credit $75,000 to Gain on sale of asset Credit the gain on sale of assets account d asset and ent. This fixed asset dit on gain of sale and nt, debit on the loss on A Account Depreciation Expense Loan to Sahreholder Medical Equipment Accumulated Depreciation Gain on Sale of Asset DR CR $628,702 $75,000 $703,702 $328,702 $300,000 $75,000 $703,702 1 Phoenix Medical Worksheet Week 4: Prepare Form 1120: 1. 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. 2. 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. 3. 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: 1. 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. 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: 1. 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. No. Line 6-11. NOL carryforward of $1,535,624 is available to offset 2014 income. Line 12. Line 13 & 14. No. Yes and Yes. Line 15. No. Line 16-18. 7:08 AM 11/04/15 Accrual Basis Phoenix Medical Balance Sheet As of December 31, 2014 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 1,725,614.28 672,344.28 1,053,270.00 260,990.00 826,113.00 -565,123.00 260,990.00 826,113.00 -565,123.00 75,000.00 0.00 75,000.00 75,000.00 0.00 75,000.00 2,061,604.28 1,498,457.28 563,147.00 40,316.00 40,316.00 0.00 Total Checking/Savings Accounts Receivable 11000 · Accounts Receivable Total Accounts Receivable Other Current Assets 18100 · Loan to Shareholder Total Other Current Assets Total Current Assets Fixed Assets 15000 · Furniture and Equipment 15500 · Leasehold Improvements 16100 · Medical Equipment 17000 · Accumulated Depreciation Total Fixed Assets 506,889.00 506,889.00 0.00 1,399,776.00 1,129,888.00 269,888.00 -1,568,773.00 -1,240,071.00 -328,702.00 378,208.00 437,022.00 -58,814.00 3,206,518.00 2,306,518.00 900,000.00 Other Assets 18001 · Investment in Big Labs 18050 · Investment in R&D Company 866,507.20 364,352.20 502,155.00 4,073,025.20 2,670,870.20 1,402,155.00 6,512,837.48 4,606,349.48 1,906,488.00 122,601.00 107,245.00 15,356.00 122,601.00 107,245.00 15,356.00 39,065.51 34,742.51 4,323.00 39,065.51 34,742.51 4,323.00 20200 · Accrued Salaries 0.00 26,375.00 -26,375.00 Total Other Current Liabilities 0.00 26,375.00 -26,375.00 161,666.51 168,362.51 -6,696.00 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 1,369,068.23 1,501,786.23 -132,718.00 1,000.00 1,000.00 0.00 Total Other Assets TOTAL ASSETS LIABILITIES & EQUITY Liabilities Current Liabilities Accounts Payable 20001 · Accounts Payable Total Accounts Payable Credit Cards 20100 · Credit Cards Total Credit Cards Other Current Liabilities Total Current Liabilities Long Term Liabilities Total Liabilities Equity 30100 · Capital Stock Page 2 of 7 7:08 AM 11/04/15 Accrual Basis Phoenix Medical Balance Sheet As of December 31, 2014 Dec 31, 14 31400 · Shareholder Distributions Dec 31, 13 $ Change -400,000.00 0.00 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 5,143,769.25 3,104,563.25 2,039,206.00 6,512,837.48 4,606,349.48 1,906,488.00 Total Equity TOTAL LIABILITIES & EQUITY -400,000.00 Page 3 of 7 7:09 AM 11/04/15 Accrual Basis Phoenix Medical Profit & Loss January through December 2014 Jan - Dec 14 Ordinary Income/Expense Income 43700 · Fee for Service Income 47300 · Refunds Total Income 5,615,706.00 -17,633.00 5,598,073.00 Expense 60000 · Advertising and Promotion 60200 · Automobile Expense 60400 · Bank Service Charges 1,252.00 11,961.00 8,808.00 61000 · Business Licenses and Permits 5,611.00 61100 · Charitable Contributions (Cash) 100,000.00 61700 · Computer and Internet Expenses 13,575.00 62400 · Depreciation Expense 62500 · Dues and Subscriptions 628,702.00 8,327.00 62600 · Equipment Rental 62610 · Laser Facility Rent 62600 · Equipment Rental - Other Total 62600 · Equipment Rental 14,979.00 201,106.00 216,085.00 63300 · Insurance Expense 55,356.00 63400 · Interest Expense 63,678.00 63600 · Laboratory Testing Fees 64300 · Meals and Entertainment 121,653.00 8,362.50 64400 · Medical Records and Supplies 103,456.00 66700 · Professional Fees 123,945.00 67200 · Repairs and Maintenance 18,855.00 67800 · Salaries and Wages 67810 · Officers Compensation 940,000.00 67800 · Salaries and Wages - Other 321,580.00 Total 67800 · Salaries and Wages 1,261,580.00 68000 · Taxes 68010 · Payroll Taxes 68020 · State Tax Total 68000 · Taxes 206,103.00 30,652.00 236,755.00 68500 · Uniforms 16,121.00 68600 · Utilities 30,364.00 Total Expense Net Ordinary Income 3,034,446.50 2,563,626.50 Other Income/Expense Other Income 70200 · Interest Income 70222 · Tax Exempt Interest 70300 · Sublease Rents 833.00 0.00 240,000.00 71000 · Dividends 80,000.00 75000 · Gain on Sale of Assets 75,000.00 Total Other Income 395,833.00 Page 4 of 7 7:09 AM 11/04/15 Accrual Basis Phoenix Medical Profit & Loss January through December 2014 Jan - Dec 14 Other Expense M-1 AC · M-1 Accrual to Cash Adjustment Total Other Expense Net Other Income Net Income 13,597.00 13,597.00 382,236.00 2,945,862.50 Schedule M-1 Line 10 Page 5 of 7 12:55 PM 10/26/15 Accrual Basis Phoenix Medical Profit & Loss January through December 2014 Jan - Dec 14 Ordinary Income/Expense Income 43700 · Fee for Service Income 47300 · Refunds Total Income 5,050,583.00 -17,633.00 5,032,950.00 Expense 60000 · Advertising and Promotion 60200 · Automobile Expense 60400 · Bank Service Charges 1,252.00 11,961.00 8,808.00 61000 · Business Licenses and Permits 5,611.00 61100 · Charitable Contributions (Cash) 60,000.00 61700 · Computer and Internet Expenses 13,575.00 62400 · Depreciation Expense 62500 · Dues and Subscriptions 628,702.00 8,327.00 62600 · Equipment Rental 62610 · Laser Facility Rent 62600 · Equipment Rental - Other Total 62600 · Equipment Rental 14,979.00 201,106.00 216,085.00 63300 · Insurance Expense 55,356.00 63400 · Interest Expense 63,678.00 63600 · Laboratory Testing Fees 121,653.00 64300 · Meals and Entertainment 16,725.00 64400 · Medical Records and Supplies 103,456.00 66700 · Professional Fees 123,945.00 67200 · Repairs and Maintenance 18,855.00 67800 · Salaries and Wages 67810 · Officer Compensation 940,000.00 67800 · Salaries and Wages - Other 321,580.00 Total 67800 · Salaries and Wages 1,261,580.00 68000 · Taxes 68010 · Payroll Taxes 68020 · State Tax Total 68000 · Taxes 206,103.00 35,041.00 241,144.00 68500 · Uniforms 16,121.00 68600 · Utilities 30,364.00 Total Expense Net Ordinary Income 3,007,198.00 2,025,752.00 Other Income/Expense Other Income 70200 · Interest Income 70222 · Tax Exempt Interest 70300 · Sublease Rents 833.00 17,621.00 240,000.00 71000 · Dividends 80,000.00 75000 · Gain on Sale of Assets 75,000.00 12:55 PM 10/26/15 Accrual Basis Phoenix Medical Profit & Loss January through December 2014 Jan - Dec 14 Total Other Income Net Other Income Net Income INFORMATION ONLY - NOT TO INPUT. 413,454.00 413,454.00 2,439,206.00 Schedule M-1 Line 1 
Purchase answer to see full attachment