Schedule M-1 Reconciliation of Income (Loss) per Books with Income (Loss) per Return

Form 1120S (2009)

Schedule L

Page

Balance Sheets per Books
Assets

(a)

1
2a
b
3
4
5
6
7
8
9
10a
b
11a
b
12
13a
b
14
15

Cash . . . . . . . . . . .
Trade notes and accounts receivable .
Less allowance for bad debts . . . .
Inventories
. . . . . . . . .
U.S. government obligations . . . .
Tax-exempt securities (see instructions)
Other current assets (attach statement) .
Loans to shareholders . . . . . .
Mortgage and real estate loans . . .
Other investments (attach statement) .
Buildings and other depreciable assets .
Less accumulated depreciation . . .
Depletable assets . . . . . . .
Less accumulated depletion . . . .
Land (net of any amortization) . . . .
Intangible assets (amortizable only) . .
Less accumulated amortization . . .
Other assets (attach statement) . . .
Total assets . . . . . . . . .
Liabilities and Shareholders’ Equity

16
17
18
19
20
21
22
23
24
25
26
27

Accounts payable . . . . . . . . .
Mortgages, notes, bonds payable in less than 1 year
Other current liabilities (attach statement) . .
Loans from shareholders . . . . . . .
Mortgages, notes, bonds payable in 1 year or more
Other liabilities (attach statement)
. . . .
Capital stock . . . . . . . . . . .
Additional paid-in capital . . . . . . .
Retained earnings . . . . . . . . .
Adjustments to shareholders’ equity (attach statement)
Less cost of treasury stock . . . . . .
Total liabilities and shareholders’ equity
. .

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(b)

(c)

(d)

f
o
s
a
9
t
0
f
0
a
2
r
/
D /30
6
0

Schedule M-1

4

End of tax year

Beginning of tax year

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Reconciliation of Income (Loss) per Books With Income (Loss) per Return
Note: Schedule M-3 required instead of Schedule M-1 if total assets are $10 million or more—see instructions

1

Net income (loss) per books

2

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5 Income recorded on books this year not included
on Schedule K, lines 1 through 10 (itemize):

Income included on Schedule K, lines 1, 2, 3c, 4,
5a, 6, 7, 8a, 9, and 10, not recorded on books this
year (itemize):

3

a
b
4

Expenses recorded on books this year not
included on Schedule K, lines 1 through 12 and
14l (itemize):
Depreciation $
Travel and entertainment $
Add lines 1 through 3

Schedule M-2

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a Tax-exempt interest $

6 Deductions included on Schedule K,
lines 1 through 12 and 14l, not charged
against book income this year (itemize):

a Depreciation $
7 Add lines 5 and 6
. . . . .
8 Income (loss) (Schedule K, line 18). Line 4 less line 7

Analysis of Accumulated Adjustments Account, Other Adjustments Account, and Shareholders’
Undistributed Taxable Income Previously Taxed (see instructions)
(a) Accumulated
adjustments account

1
2
3
4
5
6
7
8

Balance at beginning of tax year . . . . .
Ordinary income from page 1, line 21 . . .
Other additions . . . . . . . . . .
(
Loss from page 1, line 21 . . . . . . .
(
Other reductions . . . . . . . . . .
Combine lines 1 through 5 . . . . . . .
Distributions other than dividend distributions
Balance at end of tax year. Subtract line 7 from line 6

(b) Other adjustments
account

)
)(

(c) Shareholders’ undistributed
taxable income previously taxed

)

Form

1120S

(2009)