Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
Danielle Danny Thomas runs a home - based business that she purchased from a family friend on December 3 1 st of last year. The
Danielle Danny Thomas runs a homebased business that she purchased from a family friend on December st of last year. The purchase included all the inventory of the existing business at a cost of $ and the business name and web domain for an additional $ In her business Danny purchases allnatural hair care products from various local suppliers and sells them online via her website Dragonesshair.com. Her business is an unincorporated sole proprietorship she has no partners Danny has a workspace in her home which is sq ft and her total home is sq ft She operates the business fully out of her home. All inventory is stored in her home and all shipping is prepared there as well. Danny has no tax or accounting background and has asked you to help her prepare her tax return. She has provided you with the following financial information: REVENUES Sales of product $ Shipping charges $ EXPENDITURES: Hair care products for resale $ Advertising $ Accounting software $ Small tools each under $ $ Competitors customer list See Note $ Delivery truck See Note $ Legal and accounting fees $ Office supplies $ Filing cabinet $ Business insurance $ Business dues and fees $ Gym membership $ Home mortgage interest $ Macbook Pro $ Desk $ Worktables $ Home electricity $ Home insurance $ Home property taxes $ Wages for one shipping employee $ Telephone number $ Meals with suppliers $ Note: figures are annual totals Other information: Her ending inventory of products was valued at $ based on average cost. On January st Danny personally purchased a Lexus LX SUV for $ She kept a mileage log for the year evidencing that she used the Lexus about of the time for business including visits to the bank, suppliers and of course trips to visit you her new trusted Accountant. Danny borrowed money from her bank towards the purchase and has an annual interest cost of $ Her operating expenses for the vehicle are as follows: Gas $ per week Car insurance $ annually Purchased new tires during the year for $ Note The customer list was acquired from a competitor who closed their business soon after the transaction. It contained a complete list of the competitors current and past customers including their email addresses which Danny was planning to market to with an email campaign. Note The delivery truck was sold on November th as Danny decided she didnt really need it for her business. She sold it for $ Required: Complete the T Statement of Business Activities form required for Dannys business, using the information provided above
Danielle Danny Thomas runs a homebased business that she purchased from a family friend on
December st of last year. The purchase included all the inventory of the existing business at a
cost of $ and the business name and web domain for an additional $
In her business Danny purchases allnatural hair care products from various local suppliers and
sells them online via her website Dragonesshair.com. Her business is an unincorporated sole
proprietorship she has no partners
Danny has a workspace in her home which is sq ft and her total home is sq ft She
operates the business fully out of her home. All inventory is stored in her home and all shipping
is prepared there as well.
Danny has no tax or accounting background and has asked you to help her prepare her tax return.
She has provided you with the following financial information:
REVENUES
Sales of product $
Shipping charges $
EXPENDITURES:
Hair care products for resale $
Advertising $
Accounting software $
Small tools each under $ $
Competitors customer list See Note $
Delivery truck See Note $
Legal and accounting fees $
Office supplies $
Filing cabinet $
Business insurance $
Business dues and fees $
Gym membership $
Home mortgage interest $
Macbook Pro $
Desk $
Worktables $
Home electricity $
Home insurance $
Home property taxes $
Wages for one shipping employee $
Telephone number $
Meals with suppliers $
Note: figures are annual totals
Other information:
Her ending inventory of products was valued at $ based on average cost.
On January st Danny personally purchased a Lexus LX SUV for $ She kept a
mileage log for the year evidencing that she used the Lexus about of the time for business
including visits to the bank, suppliers and of course trips to visit you her new trusted Accountant.
Danny borrowed money from her bank towards the purchase and has an annual interest cost of
$ Her operating expenses for the vehicle are as follows:
Gas $ per week
Car insurance $ annually
Purchased new tires during the year for $
Note The customer list was acquired from a competitor who closed their business soon after
the transaction. It contained a complete list of the competitors current and past customers
including their email addresses which Danny was planning to market to with an email
campaign.
Note The delivery truck was sold on November th as Danny decided she didnt really need
it for her business. She sold it for $
Required:
Complete the T Statement of Business Activities form required for Dannys business, using
the information provided above
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started