Akerley Spa is a beauty salon that provides hair and nail services. Hair services and nail services are provided by two separate profit centres. Michelle Akerley is a sole proprietorship, thus the company is not responsible for paying income taxes. Michelle Mignon, the owner of the salon, does all of the administrative work and does not deduct payroll for herself. Payroll expenses are paid only to the employees that Michelle hires to work in the hair and nails departments. Michelle Akerley incurred the following revenue and expenses for the year ending December 31, 2016. Cost of sales Hair supplies |Nail supplies $10,000 $7,000 Other Expenses Administrative $2,000 Phone and internet $1,200 Advertising $500 Repair and maintenance $600 Utilities $1,000 Payroll–hair employees Payroll-nail employees $25,000 $15,000 Rent $2,000 Property taxes $2,000 Insurance $3,000 Interest $800 Depreciation $2,000 Revenue Hair revenue $50,000 Nail revenue $30,000 Using MS Excel arrange the above financial information for Michelle Akerley into a summary operating statement for the year ending December 31, 2016.

Akerley Spa is a beauty salon that provides hair and nail services. Hair services and nail services are provided by two separate profit centres. Michelle Akerley is a sole proprietorship, thus the company is not responsible for paying income taxes. Michelle Mignon, the owner of the salon, does all of the administrative work and does not deduct payroll for herself. Payroll expenses are paid only to the employees that Michelle hires to work in the hair and nails departments. Michelle Akerley incurred the following revenue and expenses for the year ending December 31, 2016. Cost of sales Hair supplies |Nail supplies $10,000 $7,000 Other Expenses Administrative $2,000 Phone and internet $1,200 Advertising $500 Repair and maintenance $600 Utilities $1,000 Payroll–hair employees Payroll-nail employees $25,000 $15,000 Rent $2,000 Property taxes $2,000 Insurance $3,000 Interest $800 Depreciation $2,000 Revenue Hair revenue $50,000 Nail revenue $30,000 Using MS Excel arrange the above financial information for Michelle Akerley into a summary operating statement for the year ending December 31, 2016.

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter9: Payroll, Estimated Payments, And Retirement Plans

Section: Chapter Questions

Problem 4MCQ

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