Libby is starting a mobile dog grooming service called Pups 'n' Suds, which operates on the...
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Libby is starting a mobile dog grooming service called Pups 'n' Suds, which operates on the cash basis method of accounting. During 2023, the business had the following financial activity: a) Libby transferred $10,000 cash from her personal bank account to the business checking account. b) The business paid $1,400 for a general liability insurance policy that covers a period of one year from February 1st, 2023, to January 31st, 2024. c) During 2023, Libby drove the grooming van 6,000 miles for business. She did not use the van for personal purposes during the year. Libby wants to use the automatic mileage method to calculate her Car and Truck Expenses for the year. The 2023 IRS mileage rate is 65.5 cents per mile for business purposes. d) Total revenue for the business was $33,000 in 2023. All customers paid cash as the time of service. e) Pups 'n' Suds ran social media ads during the year. The total cost for this advertising campaign was $2,300. f) Libby hired Best Accounting to prepare her 2023 tax return. The firm requested a $150 retainer be paid in 2023 and will bill the remaining cost once the return has been filed in 2024. g) Libby's purchased 15 bottles of shampoo during the year, at a cost of $8 per bottle. She also spent $180 on other supplies such as towels, grooming brushes, and clippers. h) Libby is considering expanding her business, so she went out to dinner with some potential business partners during the year. Libby spent $50 on the meal. i) To show appreciation for her biggest client, Libby sent them a gift basket worth $40. Record the tax-deductible amount of this business gift under "Other Expenses". j) Libby attended a two-day training session where she learned how to care for nervous dogs. She spent $300 on the hotel room while away from home. Required: Prepare and save the attached Schedule C for Pups 'n' Suds (upload the document) Schedule C Libby is starting a mobile dog grooming service called Pups 'n' Suds, which operates on the cash basis method of accounting. During 2023, the business had the following financial activity: a) Libby transferred $10,000 cash from her personal bank account to the business checking account. b) The business paid $1,400 for a general liability insurance policy that covers a period of one year from February 1st, 2023, to January 31st, 2024. c) During 2023, Libby drove the grooming van 6,000 miles for business. She did not use the van for personal purposes during the year. Libby wants to use the automatic mileage method to calculate her Car and Truck Expenses for the year. The 2023 IRS mileage rate is 65.5 cents per mile for business purposes. d) Total revenue for the business was $33,000 in 2023. All customers paid cash as the time of service. e) Pups 'n' Suds ran social media ads during the year. The total cost for this advertising campaign was $2,300. f) Libby hired Best Accounting to prepare her 2023 tax return. The firm requested a $150 retainer be paid in 2023 and will bill the remaining cost once the return has been filed in 2024. g) Libby's purchased 15 bottles of shampoo during the year, at a cost of $8 per bottle. She also spent $180 on other supplies such as towels, grooming brushes, and clippers. h) Libby is considering expanding her business, so she went out to dinner with some potential business partners during the year. Libby spent $50 on the meal. i) To show appreciation for her biggest client, Libby sent them a gift basket worth $40. Record the tax-deductible amount of this business gift under "Other Expenses". j) Libby attended a two-day training session where she learned how to care for nervous dogs. She spent $300 on the hotel room while away from home. Required: Prepare and save the attached Schedule C for Pups 'n' Suds (upload the document) Schedule C
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Related Book For
Financial Reporting and Analysis
ISBN: 978-0078025679
6th edition
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon
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