Question

Bill operates a proprietorship using the cash method of accounting, and this year he received the follc . $160 in cash from a customer for services rendered this year . a promise from a customer to pay $188 for services rendered this year tickets to a football game worth $220 as payment for services performed last year • a check for $182 for services rendered this year that Bill forgot to cash How much income should Bill realize on Schedule C?

Answer 1

The income should be Bill realized on Schedule C is calculated as follows:

	$
Cash from customer for service rendered during the year	160
Tickets to a football game as payment for service performed last year	220
Service rendered for this year Bill forgot to cash	182
The income should be Bill realized on Schedule C	$562

Note: Promise from customer to pay service rendered, is not the actual transaction, so it is not included in the Schedule C

So correct answer is option (1) or $562