Question

In: Accounting

You are working for a local accountant during tax season and the accountant has asked you...

You are working for a local accountant during tax season and the accountant has asked you to prepare the appropriate tax form for Ace Company. Ace Company is a newly formed handyman business owned by Mr. and Mrs. Becker. Mrs. Becker just enrolled in her first bookkeeping class and created the spreadsheet you were given (attached file located above).   As you can see Mrs. Becker left you a note about not paying any taxes this year.  

Update Mrs. Becker’s spreadsheet for any adjustments you feel are needed and create a spreadsheet template for her to use next year. Be sure to use proper formulas and formatting to give the documents a professional look. Submit revised client spreadsheet and create client template spreadsheet for next year to provide client

Additional Information:

The business is located at: 123 First Avenue, Ft. Lauderdale, Fl. 33221

All materials they purchased initially have been used on the jobs, no material remains.

To start the company the Becker’s purchased the following:

A small amount of material such as nails, tape, wood, etc. to use on various jobs for $1,300.

A computer and printer for $1,800, a desk and chair for $1,000, business cards, paper, pens, and other small items for the office for $200.

Groceries for their personal use from the company checking account since they did not have their personal checkbook with them at the time.

Ace Company
12/31/2017
Date Office Rent Materials Office Supplies Insurance Incoming Checks Flyers License
May-18
May-18 1300 3000
Jun-18 600
Jun-18
Jun-18 2500 7500
Jun-18 2400
Jun-18 50
Jul-18
Jul-18 450
Jul-18 1900
Jul-18 190
Aug-18
Aug-18 750
Aug-18 1200 5800
Sep-18
Sep-18
Sep-18
Oct-18
Oct-18 800
Oct-18 800 2300
Nov-18
Nov-18 6700
Dec-18 600
Dec-18 200 1000
Dec-18 500 1750
Dec-18 80
600 6900 3200 2400 28950 270 50
Checks 28950
Expenses 42370
Balance -13420

Solutions

Expert Solution

Date Office Rent Materials Office Supplies Insurance Incoming Checks Flyers License Depreciation
May-18
May-18 1300 3000
Jun-18 600
Jun-18
Jun-18 2500 7500
Jun-18 2400
Jun-18 50
Jul-18
Jul-18 450
Jul-18 1900
Jul-18 190
Aug-18
Aug-18 750
Aug-18 1200 5800
Sep-18
Sep-18
Sep-18
Oct-18
Oct-18 800
Oct-18 800 2300
Nov-18
Nov-18 6700
Dec-18 600
Dec-18 200 1000
Dec-18 500 1750 720
Dec-18 80 100
600 6900 3200 2400 28950 270 50 820
Checks 28950
Less:
Office Rent        600.00
Materials     6,900.00
Office Supplies        400.00
Insurance     2,400.00
Depreciation        820.00
(Computer and Chairs)
Net income / Losss 17,830.00

Note: Assumig that Flyers and License are for the perdonal use



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