Question

prepare a schedule C with the following information

Description Cash Accrual Example $78,000 $ 78,000 11.000 300 7.200 9-18 14,000 $99,200 $12.800 14.000 $103,300 $ 12.800 9-18 5,335 306 1.200 5,335 306 1.200 9.9 9-14 7,200 200 4.800 200 9-21 9-22 1.435 270 1.435 270 Income Service revenue: Landscaping revenue December landscape service Prepaid landscape services Sales of inventory: Tree sales Gross Profit Nonincidental materials and supplies Car and truck expense: SUV operating expense BMW operating expense Insurance Rent: Shop Trailer Travel and business meals: Travel to NY seminar Business dinner with clients Wages and subcontractor fees: Part-time employees Full-time employee (Ken) Fountain removal (part-time employee) Fence installation (prepaid subcontractor) Other expenses: Books for waiting room Education-seminar Uniforms Bad debts Other expenses (not in examples): Advertising Depreciation Interest Legal and professional services Office expense Repairs and maintenance Taxes and licenses Utilities Total deductions Net Business Income 23,000 30,000 23,000 30,000 850 1,000 9-1 300 500 0 500 280 9-5 9-25 1,160 4.000 300 1,040 1,500 1.975 400 2.200 $97,021 $ 2,179 1,160 4.000 300 1.040 1.500 1.975 400 2.200 $ 93,901 $ 9.399

Answer 1

Ans.

Schedule C using Accrual Method

	Description	Accrual
	Income
	Servicing Revenue:
	Landscaping Revenue	78,000
	December Landscape Services	11,000
	Prepaid Landscape Services	300
	Sales of Inventory:
	Tree Sales	14,000
A	Gross Profit	103,300
	Non-incidental material supplies	12,800
	Car and Truck expenses:
	SUV Operating Expenses	5,335
	BMW Operating Expenses	306
	Insurance	1,200
	Rent:
	Shop	4,800
	Trailer	200
	Travel and business meals:
	Travel to NY Seminar	1,435
	Business dinner with clients	270
	Wages and Subcontractor fees:
	Part-time employees	23,000
	Full-time employees (Ken)	30,000
	Fountain Removal (Part-time employees)	850
	Fence Installation (Prepaid subcontractor)	0
	Other Expenses:
	Books for Waiting Room	50
	Education- Seminar	300
	Uniforms	500
	Bad Debts	280
	Other Expenses (not in example):
	Advertising	1,160
	Depreciation	4,000
	Interest	300
	Legal and Professional Services	1,040
	Office Expenses	1,500
	Repairs and Maintenance	1,975
	Taxes and Licenses	400
	Utilities	2,200
B	Total Deduction	93,901
(A-B)	Net Business Income	9,399