Description
Include the following:
- Complete the Book Adjustments (Adj1 Sale of fixed assets, Adj2 2015 Depreciation, and Reclass of accounts payable) using the included resources.
- Adjust the Journal Entries using the included resources for 2015 depreciation.
- Apply information from the included resources to complete the Tax Adjustments:
- Accrual to Cash Adjustment - Accounts Receivable;
- Charitable contributions carryover;
- 50% Meals and Entertainment;
- Non-deductible penalties;
- Tax Exempt interest;
- Accrual to Cash Adjustment - Accounts Payable.
- Classify the Taxable Income entries on the Adjusted Trial Balance to complete using the included resources.
- Apply Generally Accepted Accounting Principles. Your manager has also listed questions that require a response. Read the Phoenix Medical Worksheet Student Part 1 (Microsoft® Word) and answer the questions using short answers.
- Complete the Microsoft® Excel® spreadsheet showing your adjustments and final tax trial balance. Answer all questions as short answers.
Explanation & Answer
Attached.
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
18050 · Investment in R&D Company
506,889.00
1,699,776.00
Adj 1
1,240,071.00
866,507.20
122,601.00
r
1,207,401.72
1,000.00
400,000.00
32000 · Retained Earnings
3,103,563.25
43700 · Fee for Service Income
5,050,583.00
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
14,979.00
63300 · Insurance Expense
55,356.00
63400 · Interest Expense
63,678.00
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
628,702.00
201,106.00
62600 · Equipment Rental:62610 · Laser Facility Rent
63600 · Laboratory Testing Fees
28,953.00
0.00
30100 · Capital Stock
60000 · Advertising and Promotion
r
39,065.51
28001 · Business Loan
47300 · Refunds
Adj 1 & 2
3,206,518.00
20100 · Credit Cards
31400 · Shareholder Distributions
75,000.00
40,316.00
20001 · Accounts Payable
20200 · Accrued Salaries
Debit
Adj 1
17000 · Accumulated Depreciation
18001 · Investment in Big Labs
Book Adjustments
833.00
Page 1 of 12
12:41 PM
10/26/15
Accrual Basis
Phoenix Medical
Adjusted Trial Balance
January through December 2014
Unadjusted Balance
Debit
70222 · Tax Exempt Interest
Credit
Book Adjustments
Debit
17,621.00
70300 · Sublease Rents
240,000.00
71000 · Dividends
80,000.00
75000 · Gain on Sale of Assets
Adj 1
M-1 Accrual to Cash - Accounts Payable
TOTAL
11,102,739.48
11,102,739.48
75,000
628,702
28953
300,000
732,655.00
Book Adjustments
Adj 1 Sale of fixed assets
Adj 2 2015 Depreciation
r
Reclass of accounts payable
Reclassfication has no af
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
565123
40,000
8362.5
4389
17621
13597
Page 2 of 12
12:41 PM
10/26/15
Accrual Basis
Phoenix Medical
Adjusted Trial Balance
January through December 2014
Unadjusted Balance
Adjusted Book Balance
Credit
Debit
10001 · Checking
609,842.00
10010 · Savings
557,392.23
10020 · Cash Maximizer
558,380.05
11000 · Accounts Rec...