Problem 3-1 (Algorithmic) Schedule C (LO 3.1) Scott Butterfieldis self-employed as a CPA. He...

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Accounting

Problem 3-1 (Algorithmic) Schedule C (LO 3.1) Scott Butterfieldis self-employed as a CPA. He uses the cash method of accounting,and his Social Security number is 644-47-7833. His principalbusiness code is 541211. Scott's CPA practice is located at 678Third Street, Riverside, CA 92860. Scott’s income statement for theyear shows the following: Income Statement Scott Butterfield, CPAIncome Statement 12/31/2017 Current Period Prior Period 1/1/2017 to12/31/2017 1/1/2016 to 12/31/2016 REVENUES Tax Services $156,400$72,154 Accounting Services 15,640 50,256 Other Consulting Services34,408 7,690 TOTAL REVENUES 206,448 130,100 COST OF SERVICESSalaries 31,280 29,400 Payroll Taxes 2,387 2,275 Supplies 300 1,225TOTAL COST OF SERVICES 33,967 32,900 GROSS PROFIT (LOSS) 172,48197,200 OPERATING EXPENSES Advertising and Promotion 2,000 –Business Licenses and Permits 620 250 Charitable Contributions 400250 Continuing Education 1,500 – Dues and Subscriptions 1,640 3,500Insurance 9,384 870 Meals and Entertainment 7,038 5,400 OfficeExpense 3,128 – Postage and Delivery 85 – Printing and Reproduction1,564 – Office Rent 4,692 13,800 Travel 6,256 750 Utilities 1,8772,724 TOTAL OPERATING EXPENSES 40,184 27,544 NET INCOME (LOSS)$132,297 $69,656 Scott also mentioned the following: The expensesfor dues and subscriptions were his country club membership duesfor the year. The charitable contributions were made to a politicalaction committee. Scott does not generate income from the sale ofgoods and therefore does not record supplies and wages as part ofcost of goods sold. Scott placed a business auto in service onJanuary 1, 2014 and drove it 4,093 miles for business, 2,456 milesfor commuting, and 4,912 miles for nonbusiness purposes. His wifehas a car for personal use.

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Form 1040 Department of the TreasuryInternal Revenue Service 99 2017 US Individual Income Tax Return OMB No 15450074 IRS Use OnlyDo not write or staple in this space For the year Jan 1Dec 31 2017 or other tax year beginning 2017 ending See separate instructions Your first name and initial Last name Your social security number Scott Butterfield 644477833 If joint return spouses name initial Last name Spouses social security number Home address number and street If you have a PO box see instructions Apt no Make sure the SSNs above and on line 6c are correct 678 Third Street Riverside City town or post office state and ZIP code If you have a foreign address also complete spaces below see instructions Presidential Election Campaign CA 92860 Check here if you or your spouse if filing jointly want 3 to go to this fund Checking a box below will not change your tax or Foreign See Answer

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In: AccountingProblem 3-1 (Algorithmic) Schedule C (LO 3.1) Scott Butterfieldis self-employed as a CPA. He uses...Problem 3-1 (Algorithmic) Schedule C (LO 3.1) Scott Butterfieldis self-employed as a CPA. He uses the cash method of accounting,and his Social Security number is 644-47-7833. His principalbusiness code is 541211. Scott's CPA practice is located at 678Third Street, Riverside, CA 92860. Scott’s income statement for theyear shows the following: Income Statement Scott Butterfield, CPAIncome Statement 12/31/2017 Current Period Prior Period 1/1/2017 to12/31/2017 1/1/2016 to 12/31/2016 REVENUES Tax Services $156,400$72,154 Accounting Services 15,640 50,256 Other Consulting Services34,408 7,690 TOTAL REVENUES 206,448 130,100 COST OF SERVICESSalaries 31,280 29,400 Payroll Taxes 2,387 2,275 Supplies 300 1,225TOTAL COST OF SERVICES 33,967 32,900 GROSS PROFIT (LOSS) 172,48197,200 OPERATING EXPENSES Advertising and Promotion 2,000 –Business Licenses and Permits 620 250 Charitable Contributions 400250 Continuing Education 1,500 – Dues and Subscriptions 1,640 3,500Insurance 9,384 870 Meals and Entertainment 7,038 5,400 OfficeExpense 3,128 – Postage and Delivery 85 – Printing and Reproduction1,564 – Office Rent 4,692 13,800 Travel 6,256 750 Utilities 1,8772,724 TOTAL OPERATING EXPENSES 40,184 27,544 NET INCOME (LOSS)$132,297 $69,656 Scott also mentioned the following: The expensesfor dues and subscriptions were his country club membership duesfor the year. The charitable contributions were made to a politicalaction committee. Scott does not generate income from the sale ofgoods and therefore does not record supplies and wages as part ofcost of goods sold. Scott placed a business auto in service onJanuary 1, 2014 and drove it 4,093 miles for business, 2,456 milesfor commuting, and 4,912 miles for nonbusiness purposes. His wifehas a car for personal use.