Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Not For Profit Entities Audit And Accounting Guide

Authors: AICPA

1st Edition

1937351971, 978-1937351977

More Books

Students also viewed these Accounting questions