Question
Please help, I edited question for legible! it too long question, so I divided post . total questions: a-r Please help to complete the Wilson's
Please help, I edited question for legible! it too long question, so I divided post . total questions: a-r
Please help to complete the Wilson's Federal income tax return for 2019
c. Anna operates her business under the name, Wilsons Travel Agency. Located at 7200 Treeline Drive, Montvale, NJ 07645. Anna has one full time employee, and her federal employer identification number is 74-2638596.
Anna uses the cash method of accounting for her business, and her records for 2019 show the following:
Fees and commissions $134,000
Expenses:
Advertising 1,425
Bank services charges 75
Dues and subscriptions 560
Insurance 1,100
Interest on furniture loan 960
Professional services 700
Office rent 6,000
Office supplies 470
Meals and entertainment 1,700
Payroll taxes 2,170
Utilities and telephone 3,480
Wages paid to full-time employee 22,800
Miscellaneous expense 20
Meals and entertainment expense of $1,700 included amounts spent for client development of $1,000 for meals and $700 for entertainment.
Automobile expenses and amount paid to her children are not included in the above expenses.
Anna paid her daughters Lisa and Laura$750 and $450, respectively, for working part-time during the summer. Since she did not withhold or pay any Federal income or employment taxes on these amounts, Anna is not certain that she is allowed a deduction. She does feel the amount paid to her children were reasonable, however.
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