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 2022 Current Period Prior Period 1 1 2022 to 12 31 2022 1 1 2021 to 12 31 2021 REVENUES Tax Services $76,124 $75,067 Accounting Services 49,081 48,860 Other Consulting Services 10,095 10,115 TOTAL REVENUES 135,300 134,042 COST OF SERVICES Salaries 35,000 30,100 Payroll Taxes 3,098 2,387 Supplies 1,302 1,548 TOTAL COST OF SERVICES 39,400 34,035 GROSS PROFIT (LOSS) 95,900 100,007 OPERATING EXPENSES Advertising and Promotion 250 350 Business Licenses and Permits 300 250 Charitable Contributions 400 275 Continuing Education 500 300 Dues and Subscriptions 2,800 3,500 Insurance 900 875 Meals and Entertainment 4,400 5,500 Office Expense 200 150 Postage and Delivery 100 50 Printing and Reproduction 50 100 Office Rent 12,000 14,000 Travel 900 865 Utilities 3,000 2,978 TOTAL OPERATING EXPENSES 25,800 29,193 NET INCOME (LOSS) $70,100 $70,814 Scott also mentioned the following The expenses for dues and subscriptions were his country club membership dues for the year $400 of the charitable contributions were made to a political action committee Scott does not generate income from the sale of goods and therefore does not record supplies and wages as part of cost of goods sold Scott placed a business auto in service on January 1, 2019 and drove it 4,000 miles for business (equally over the course of the year), 3,250 miles for commuting, and 4,500 miles for nonbusiness purposes No business expenses for the car are included above Scott wishes to use the standard mileage method His wife has a car for personal use Meals and Entertainment expense includes $2,500 related to golf greens fees for entertaining clients, $1,000 for business meals provided by restaurants, and $900 for the bagels and doughnuts once a month for all employees

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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

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 12/31/2022
	Current Period		Prior Period
	1/1/2022 to 12/31/2022	1/1/2021 to 12/31/2021
REVENUES
Tax Services	$76,124		$75,067
Accounting Services	49,081		48,860
Other Consulting Services	10,095		10,115
TOTAL REVENUES	135,300		134,042
COST OF SERVICES
Salaries	35,000		30,100
Payroll Taxes	3,098		2,387
Supplies	1,302		1,548
TOTAL COST OF SERVICES	39,400		34,035
GROSS PROFIT (LOSS)	95,900		100,007
OPERATING EXPENSES
Advertising and Promotion	250		350
Business Licenses and Permits	300		250
Charitable Contributions	400		275
Continuing Education	500		300
Dues and Subscriptions	2,800		3,500
Insurance	900		875
Meals and Entertainment	4,400		5,500
Office Expense	200		150
Postage and Delivery	100		50
Printing and Reproduction	50		100
Office Rent	12,000		14,000
Travel	900		865
Utilities	3,000		2,978
TOTAL OPERATING EXPENSES	25,800		29,193

NET INCOME (LOSS)	$70,100		$70,814

Scott also mentioned the following:

The expenses for dues and subscriptions were his country club membership dues for the year.
$400 of the charitable contributions were made to a political action committee.
Scott does not generate income from the sale of goods and therefore does not record supplies and wages as part of cost of goods sold.
Scott placed a business auto in service on January 1, 2019 and drove it 4,000 miles for business (equally over the course of the year), 3,250 miles for commuting, and 4,500 miles for nonbusiness purposes. No business expenses for the car are included above. Scott wishes to use the standard mileage method. His wife has a car for personal use.
Meals and Entertainment expense includes $2,500 related to golf greens fees for entertaining clients, $1,000 for business meals provided by restaurants, and $900 for the bagels and doughnuts once a month for all employees.