Question

SCHEDULE C (Form 1040) Profit or Loss From Business (Sole Proprietorship) •Go to www.irs.gov/Schedulec for instructions and the latest information. OMB No. 1545-0074 2018 Department of the Treasury Internal Revenue Service (99) Name of proprietor RICK GRIME Attachment Attach to Form 1040, 1040NR, or 1041; partnerships generally must file Form 1065. Sequence No. 09 Social security number (SSN) 000-00-0000 B Enter code from instructions | 5 | 7 | 1|6|3|0 D Employer ID number (EIN) (see instr.) 0|oio|0|0|0|o| 0|0 Principal business or profession, including product or service (see instructions) LANDSCAPING Business name. If no separate business name, leave blank. GREEN ACRES LANDSCAPING Business address (including suite or room no.) > BUCKSNORT STREET SAN ANTONIO, TX 78208 City, town or post office, state, and ZIP code IF (2) DAccrual (3) Dother (specify) Accounting method: (1) Cash Did you "materially participate" in the operation of this business during 2018? If "No," see instructions for limit on losses Yes No If you started or acquired this business during 2018, check here Yes V No Did you make any payments in 2018 that would require you to file Form(s) 1099? (see instructions) If "Yes," did you or will you file required Forms 1099? Part I Income Yes No Gross receipts or sales. See instructions for line 1 and check the box if this income was reported to you on Form W-2 and the "Statutory employee" box on that form was checked. 99,200 2 Returns and allowances 2 3 Subtract line 2 from line 1 99,200 4 Cost of goods sold (from line 42) 4 Gross profit. Subtract line 4 from line 3 99,200 Other income, including federal and state gasoline or fuel tax credit or refund (see instructions) 6 Gross income. Add lines 5 and 6 99,200 Part II Expenses. Enter expenses for business use of your home only on line 30. 1,500 Advertising . 1,160 18 Office expense (see instructions) 18 Car and truck expenses (see Pension and profit-sharing plans 19 19 instructions). 20 Rent or lease (see instructions): 5,641 10 Commissions and fees 10 Vehicles, machinery, and equipment 20a 7,400 a b Other business property 11 Contract labor (see instructions) 11 1,000 20b 1,975 12,800 12 Depletion Depreciation and section 179 12 21 Repairs and maintenance 21 13 22 Supplies (not included in Part I) 22 deduction (not expense included in Part II) (see instructions). Taxes and licenses 23 23 400 13 4,000 24 Travel and meals:

1) The image shows a completed schedule C using the cash method. Complete schedule C using the ACCRUAL method.

2) Are there any differences between the 2018 and 2019 forms?

Answer 1

Ans 1.

Schedule C using Accrual Method

	Description	Accrual
	Income
	Servicing Revenue:
	Landscaping Revenue	78,000
	December Landscape Services	11,000
	Prepaid Landscape Services	300
	Sales of Inventory:
	Tree Sales	14,000
A	Gross Profit	103,300
	Non-incidental material supplies	12,800
	Car and Truck expenses:
	SUV Operating Expenses	5,335
	BMW Operating Expenses	306
	Insurance	1,200
	Rent:
	Shop	4,800
	Trailer	200
	Travel and business meals:
	Travel to NY Seminar	1,435
	Business dinner with clients	270
	Wages and Subcontractor fees:
	Part-time employees	23,000
	Full-time employees (Ken)	30,000
	Fountain Removal (Part-time employees)	850
	Fence Installation (Prepaid subcontractor)	0
	Other Expenses:
	Books for Waiting Room	50
	Education- Seminar	300
	Uniforms	500
	Bad Debts	280
	Other Expenses (not in example):
	Advertising	1,160
	Depreciation	4,000
	Interest	300
	Legal and Professional Services	1,040
	Office Expenses	1,500
	Repairs and Maintenance	1,975
	Taxes and Licenses	400
	Utilities	2,200
B	Total Deduction	93,901
(A-B)	Net Business Income	9,399

Ans 2. The second page to the form of first form is missing due to which extensive analysis of cost of goods sold is not possible.