Advanced Tax Concepts.

TJ and Associates II S Corporation EIN: 12-3456789 Date Incorporated: 01/01/2012 Date S Corporation elected: 01/01/2012 Address: 4801 S. Commercial, Sunshine, FL 00000 Shareholders/Officers: Jess Hawkins Position: Vice President Ownership: 40% SS#: 345-67-8901 W2-Wages: $100,000 Medical: $13,500 Time spent working for corporation: 100% Terri Hawkins Position: President Ownership: 40% SS# 234-56-7890 W2-Wages: $86,500 Medical: $-0- Time spent working for corporation: 100% Judith Zollinger Position: Treasurer Ownership: 20% SS# 543-21-0986 W2 – Wages: $63,500 Medical: $13,500 Time spent working for corporation: 100% Address: 1234 Main Street, Sunshine, FL, 33040 - All meals were while traveling or entertaining prospective clients. - TJ & Associates purchased a new copy machine during the year. The business purchased the asset on June 1 and began using it on July 1. The total cost of the copy machine was $105,000. Ms. Hawkins tells you that she wishes to deduct as much of the copier purchase this year as possible. - Use all appropriate tax methods that minimize taxable income.

Dec 31, 12

ASSETS Current Assets

Checking/Savings Checking 96,883.00 Money Market 120,000.00 Payroll 850.00

Total Checking/Savings 217,733.00

Accounts Receivable Allowance for Doubtful Accounts -503.00 Various AR 16,750.00

Total Accounts Receivable 16,247.00

Total Current Assets 233,980.00

TOTAL ASSETS 233,980.00

LIABILITIES & EQUITY Liabilities

Current Liabilities Accounts Payable

Accounts Payable 13,480.00

Total Accounts Payable 13,480.00

Other Current Liabilities Accrued PR Expense 850.00

Total Other Current Liabilities 850.00

Total Current Liabilities 14,330.00

Total Liabilities 14,330.00

Equity Capital Stock 120,000.00 Retained Earnings 99,650.00

Total Equity 219,650.00

TOTAL LIABILITIES & EQUITY 233,980.00

TJ and Associates II Balance Sheet

Accrual Basis As of December 31, 2012

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Dec 31, 13

ASSETS Current Assets

Checking/Savings Checking 1,212.00 Money Market 190,000.00 Payroll 4,198.00 Petty Cash 500.00

Total Checking/Savings 195,910.00

Accounts Receivable Allowance for Doubtful Accounts -960.00 Various AR 32,000.00

Total Accounts Receivable 31,040.00

Other Current Assets Prepaid Insurance 6,000.00 Prepaid Office Supplies 2,100.00

Total Other Current Assets 8,100.00

Total Current Assets 235,050.00

Fixed Assets Accumulated Depreciation -21,000.00 Furniture and Equipment 105,000.00

Total Fixed Assets 84,000.00

TOTAL ASSETS 319,050.00

LIABILITIES & EQUITY Liabilities

Current Liabilities Accounts Payable

Accounts Payable 27,850.00

Total Accounts Payable 27,850.00

Other Current Liabilities FICA Payable Employee 797.00 FICA Payable Employer 797.00 FIT Payable 2,604.00

Total Other Current Liabilities 4,198.00

Total Current Liabilities 32,048.00

Long Term Liabilities USA Bank 70,000.00

Total Long Term Liabilities 70,000.00

Total Liabilities 102,048.00

Equity Capital Stock 120,000.00 Distributions -11,800.00 Retained Earnings 99,650.00 Net Income 9,152.00

Total Equity 217,002.00

TOTAL LIABILITIES & EQUITY 319,050.00

2:19 PM TJ and Associates II 05/20/14 Balance Sheet Accrual Basis As of December 31, 2013

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Jan - Dec 13

Ordinary Income/Expense Income

Accounting Services Income 220,000.00 Consulting Income 72,000.00 Tax Preparation Services Income 98,000.00

Total Income 390,000.00

Gross Profit 390,000.00

Expense Advertising and Promotion 3,200.00 Automobile Expense 5,769.00 Bad Debt Expense 960.00 Charitable Contributions 650.00 Depreciation Expense 21,000.00 Dues and Subscriptions 4,600.00 Insurance Expense

General Liability Insurance 6,000.00 Health Insurance 27,000.00 Professional Liability 8,500.00 Worker's Compensation 324.00

Total Insurance Expense 41,824.00

Interest Expense 8,100.00 Meals and Entertainment 790.00 Office Rent 7,000.00 Office Supplies 4,800.00 Payroll Taxes 19,125.00 Penalties and Fines 95.00 Political Contributions 200.00 Postage and Delivery 500.00 Printing and Reproduction 2,300.00 Professional Fees 1,500.00 Salaries and Wages 250,000.00 Telephone Expense 2,100.00 Travel Expense 1,775.00 Utilities 4,560.00

Total Expense 380,848.00

Net Ordinary Income 9,152.00

Net Income 9,152.00

TJ and Associates II Profit & Loss

Accrual Basis January through December 2013

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