Stella, a single proprietor engaged in service business, reported the following business income and expenses: Service income- P500,000, Collections during the year- P490,000, Expenses actually incurred during the year- 150,000, Expenses paid during the year-200,000. How much is the net income from business?
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Stella, a single proprietor engaged in service business, reported the following business income and expenses: Service income- P500,000, Collections during the year- P490,000, Expenses actually incurred during the year- 150,000, Expenses paid during the year-200,000. How much is the net income from business?
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- On January 2, Daniel Harrison contributed $20,000 to start his business. At the end of the year,the business had generated $30,000 in sales revenues, incurred $18,000 in operating expenses, anddistributed $5,000 for Daniel to use to pay some personal expenses. Prepare ( a ) a statement ofowner’s equity, assuming this is a sole proprietorship; ( b ) the owner’s equity section of the balancesheet, assuming this is a sole proprietorship; and ( c ) the stockholder’s equity section of the balancesheet, assuming this is a corporation with no-par value stock.Ms. QWE began a business on April 1, 2021, contributing to the business the following assets: Cash, P 3,000,000, Office Supplies, P 275,000, Office Equipment, P 700,000, Furniture and Fixtures, P 2,100,000. A. What is the total value of the assets that Ms. QWE contributed to the business? B. Determine the value of Ms. QWE's ownership in the business.during 2017, Regina, a sole proprietor, had the following income and expenses from herhome jewelry business. Regina is also employed as an office assistant at a local business. W-2 wages from employer$28,000 Proceeds from jewelry sales15,000 Supplies for jewelry5,000 Travel for jewelry1,400 Charitable contributions to church3,000 a.What income or loss should be reported on Schedule C? b.What is Regina's AGI?
- Tomas began carrying on a home-based business as a sole proprietor on January 1, 2022. In 2022, he received $40,000 cash for services rendered and paid $33,000 in business expenses. On December 31, 2022 there was an outstanding accounts receivable for amounts owed by a customers. of $1,200 There was also an account payable of $2,300 as an amount owing to a supplier. In addition to any business expenses, Tomas can also deduct one-third of his house expenses since he utilizes the ground floor of his rented 3-storey home. Total house costs for 2022 were: rent of $19,200; home insurance of $800 and utilities of $2,100. What is Tomas' maximum 2022 home office expense? a.$5,900. b.$7,000. c.$7,367. d.$7,100.Steven is an accountant and maintains an office in his home. Expenses of the business (other than home office expenses) are $15,000. Steven incurs the following home office expenses: Real property taxes on residence: $2,400 Interest expense on residence: $4,000 Operating expenses of residence: $3,200 Depreciation on residence (based on 8% business use): $450. His office occupies 10% of the total floor space of his residence. Gross income from his business is $34,000. Assuming that Steven uses the regular method, what is his allowable office in the home deduction?P is a sole proprietor whose accounting records are incomplete. All the sales are cash sales and during the year $50,000 was banked, including $5,000 from the sale of a business car. He paid $12,000 wages in cash from the till and withdrew $2,000 per month as drawings. The cash in the till at the beginning and end of the year was $300 and $400 respectively. What was the value of P’s sales revenue for the year? A $80,900 B $81,000 C $81,100 D $86,100
- Cindy, who is self-employed, maintains an office in her home that comprises 10% (340 square feet) of total floor space. Gross income for her business is $54,650, and her residence expenses are as follows: Real property taxes $4,092 Interest on mortgage 6,820 Operating expenses 3,410 Depreciation (based on 10% business use) 8,075 a. What is Cindy's office in the home deduction based on the regular method? b. What is Cindy's office in the home deduction based on the simplified method?Identify the amount, if any, that these individuals must include in gross income in the following independent cases. Assume that the individuals are on the cash method of accounting and report income on a calendar-year basis. a. Elmer was an extremely diligent employee this year, and his employer gave him three additional days off with pay (Elmer’s gross pay for the three days totaled $1,200, but his net pay was only $948). b. Amax purchased new office furniture and allowed each employee to take home old office furniture valued at $250.Ricardo is an engineer in a private company and earned salaries of $ 103,000 a year. During the current year, he started a vitamin sales business, in which he made a net loss of $ 4,000. How much is adjusted gross income?
- P is a sole proprietor whose accounting records are incomplete. All the sales are cash sales and during the year $50,000 was banked, including $5,000 from the sale of a business car. He paid $12,000 wages in cash from the till and withdrew $2,000 per month as drawings. The cash in the till at the beginning and end of the year was $300 and $400 respectively. What were the sales for the year? A $80,900 B $81,000 C $81,100 D $86,100Ferran operates a boutique yarn store from their own. The store had accountingincome after tax of $50,000. Already deducted from that number are depreciation of$5,000, financing fees of $2,500, and salaries to arm's length employees of $10,000.CCA would be $4,000.Calculate Ferran's taxable income based on what you know about them?Marissa Moose is a self-employed tax accountant in Alberta. The current year’s income statement for Marissa’s business (determined according to generally accepted accounting principles) is as follows: Professional income $300,000 Other expenses ($121,000) Net Income $179,000 Included in Other Expenses are the following amounts: (a) A $5,000 contribution to the federal Liberal political party (b) Travel expenses of $15,000 for Marissa and her husband to go to Laguna Beach, CA on vacation (c) Accounting depreciation on furniture and fixtures is $1,000. The UCC in Class 8 is $12,000 (d) Golf course membership dues of $8,000 plus the cost of all meals purchased at the golf course for $2,000 (e) Salary of $90,000 paid to Marissa's husband for cleaning up the office occassionally (note: an average janitor's salary is $45,000) Required: Calculate net business income for tax purposes for Marissa's business. Explain any items not included in your calculations.