Schedule C (LO 3.1, 3.3, 3.5, 3.7) Scott Butterfield is self-employed as a CPA. He uses the cash method of accounting, and his Social Security number is 644-47-7833. His principal business code is 541211. Scott's CPA practice is located at 678 Third Street, Riverside, CA 92860. Scott's income statement for the year shows the following:
Income Statement
Scott Butterfield, CPA
Income Statement
12/31/2020
Current Period Prior Period
1/1/2020 to 12/31/2020 1/1/2019 to 12/31/2019
REVENUES
Tax Services $142,000 $72,154
Accounting Services 14,200 50,256
Other Consulting Services 31,240 7,690
TOTAL REVENUES 187,440 130,100
COST OF SERVICES
Salaries 28,400 29,400
Payroll Taxes 2,387 2,275
Supplies 300 1,225
TOTAL COST OF SERVICES 31,087 32,900
GROSS PROFIT (LOSS) 156,353 97,200
OPERATING EXPENSES
Advertising and Promotion 2,000 –
Business Licenses and Permits 620 250
Charitable Contributions 450 250
Continuing Education 1,500 –
Dues and Subscriptions 1,640 3,500
Insurance 8,520 870
Meals and Entertainment 6,390 5,400
Office Expense 2,840 –
Postage and Delivery 85 –
Printing and Reproduction 1,420 –
Office Rent 4,260 13,800
Travel 5,680 750
Utilities 1,704 2,724
TOTAL OPERATING EXPENSES 37,059 27,544
NET INCOME (LOSS) $119,294 $69,656
Scott also mentioned the following:
Complete Schedule C for Scott showing Scott's net taxable profit from self-employment. Assume Scott has evidence to support his deductions. If required, only use the minus sign to indicate a net loss. When required, round amounts to the nearest dollar.