2. Fauzana owns a business that makes and sells pets clay. During the financial year ended 31 July 2020, she incurred the following items of expenditure. State whether each of the below is Capital Expenditure or Revenue Expenditure. a. Clay for making the pets toys. b. Wages of sales staff C. Purchase of potters wheel for use in the business d. Installation costs for the potters wheel e. Wages of staff operating the potters wheel Redecoration of store room f. Payment of extra wages to own staff for fitting the alarm and cctv h. Payment of architect fees for designing the proposed new shop i. Purchase of new telephone system for the business
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- 2. Fauzana owns a business that makes and sells pets clay. During the financial year ended 31 July 2020, she incurred the following items of expenditure. State whether each of the below is Capital Expenditure or Revenue Expenditure.a. Clay for making the pets toys.b. Wages of sales staffc. Purchase of potters wheel for use in the businessd. Installation costs for the potters wheele. Wages of staff operating the potters wheelf. Redecoration of store roomg. Payment of extra wages to own staff for fitting the alarm and cctvh. Payment of architect fees for designing the proposed new shopi. Purchase of new telephone system for the businessFauzana owns a business that makes and sells pets During the financial year ended 31 July 2020, she incurred the following items of expenditure. State whether each of the below is Capital Expenditure or Revenue Expenditure. a. Clay for making the pets toys. b. Wages of sales staff c. Purchase of potters wheel for use in the business d. Installation costs for the potters wheel e. Wages of staff operating the potters wheel f. Redecoration of store room g. Payment of extra wages to own staff for fitting the alarm and cctv h. Payment of architect fees for designing the proposed new shop i. Purchase of new telephone system for the business2. Fauzana owns a business that makes and sells pets clay. During the financial year ended 31 July 2020, she incurred the following items of expenditure. State whether each of the below is Capital Expenditure or Revenue Expenditure. Clay for making the pets toys. b. а. Wages of sales staff Purchase of potters wheel for use in the business С. d. Installation costs for the potters wheel Wages of staff operating the potters е. wheel f. Redecoration of store room g. Payment of extra wages to own staff for fitting the alarm and cctv h. Payment of architect fees for designing the proposed new shop i. Purchase of new telephone system for the business
- Give typing answer with explanation and conclusion Donna owns and operates a dress shop . In 2022, her total sales were$80,000. She refunded $950 to customers who were unsatisfied. Her cost of goods sold was $30,000 what is Donna's gross income on her schedule c, profit or loss from business (sole proprietorship)a. What amount of these costs can Melissa deduct as business expenses? b. Suppose that while Melissa was on the coast, she also spent two days sightseeing the national parks in the area. To do the sightseeing, she paid $1,100 for transportation, $800 for lodging, and $355 for meals during this part of her trip, which she considers personal in nature. What amount of the total costs can Melissa deduct as business expenses? c. Suppose that Melissa made the trip to San Francisco primarily to visit the national parks and only attended the business conference as an incidental benefit of being present on the coast at that time. What amount of the airfare can Melissa deduct as a business expense? d. Suppose that Melissa's permanent residence and business were located in San Francisco. She attended the conference in San Francisco and paid $380 for the registration fee. She drove 182 miles over the course of three days and paid $183 for parking at the conference hotel. In addition, she spent…Teresa is a civil engineer who uses her automobile for business. Teresa drove her automobile a total of 11,965 miles during 2019, of which 80 percent was business mileage. The actual cost of gasoline, oil, depreciation, repairs, and insurance for the year was $6,440. Teresa is eligible to use the actual or standard method. How much is Teresa's transportation deduction based on the standard mileage method? $______________ How much is Teresa's transportation deduction based on the actual cost method? $______________ Which method should Teresa use to calculate her transportation deduction? __________________________________________________________________________ Why? _____________________________________________________________________ __________________________________________________________________________
- Bonnie opens a computer sales and repair service during the current year. Her records for the year show: Repair revenue Computer sales Computer purchases Employee wages Supplies, utilities, etc. Gross income: Repair revenues Computer sales Total revenue Deductions: Cost of goods sold Employee wages Supplies, utilities, etc. Total deductions Cash Sales Made Received Taxable income $30,000 26,000 $22,000 18,000 Bonnie has computers on hand on December 31 that cost $40,000 and have a retail selling price of $65,000. Compute taxable income under the various methods. Liability Incurred Cash Paid Accrual $55,000 12,000 9,000 Hybrid $27,500 $ 10,000 6,000during 2017, Regina, a sole proprietor, had the following income and expenses from herhome jewelry business. Regina is also employed as an office assistant at a local business. W-2 wages from employer$28,000 Proceeds from jewelry sales15,000 Supplies for jewelry5,000 Travel for jewelry1,400 Charitable contributions to church3,000 a.What income or loss should be reported on Schedule C? b.What is Regina's AGI?Jessica Grewal decided to open a food truck business, the Samosa Shack. She encountered the following transactions in managing her equipment over the first 2 years of her business. April 1, 2021 October 1, 2021 December 31, 2021 April 1, 2022 December 31, 2022 March 31, 2023 Purchased food truck for $84,000 and paid $8,400 to have a commercial oven installed. Other costs that she incurred are $8,400 for insurance on the truck for the first year, and $3,000 to have the truck painted with her Samosa Shack logo. Jessica estimates that the truck would last 5 years and have a $12,000 residual value. The oven is also expected to last 5 years and have a $600 residual value. The oven broke down and cost $1,800 to repair. Recorded the adjusting entry for depreciation and insurance. Replaced all of the tires with all-season tires for $1,800 and paid another year of insurance for $8,400. Recorded the adjusting entry for depreciation and insurance. Jessica was exhausted from the food truck…
- Subject :-- Accounting Melissa is a mechanic. She runs her own business specialising in repairing electric vehicles, especially cars. This year her company has some expenses. Referring to relevant provisions of the Income Tax Assessment Act 1997 (Cth), Income Tax Assessment Act 1936 (Cth) and case laws, discuss the following amounts are deductible or not: (Maximum 800 words) a) She spends travel cast from her home to her repair centre regularly. In this process, she spent a total travel cost of $3,200 this year. b) A staff who works in the repair centre paid a $1,080 fine for speeding a car that he was driving in the process of servicing and repairing. c) Legal expenses incurred by a company opposing a petition for winding up. The company paid $ 11,000 for lawyers and court fees.Ms. Chiu moved from Toronto to Vancouver to start a new job. She earned $40,000 from her Toronto job and $50,000 from her Vancouver job in the year of the move. Ms. Chiu incurred the following costs of moving all of which can be substantiated by receipts: Moving van to transport household effects ....... Travelling costs-self, spouse and two children Legal fees - Purchase of Vancouver house......... Legal fees - Sale of Toronto house Loss on sale of Toronto house ..... Costs while waiting for Vancouver house - Hotel (20 days X $100) Meals (20 days X $45) ..... House hunting trip (prior to Vancouver move)..... $5,000 3,000 900 1,100 25,000 2,000 Travelling costs consist of three meals a day for four persons over five full days, gas and other car costs, and hotel for five nights at $100 per night. The distance moved between Toronto and Vancouver was 4,430 kilometres. Select one: 900 800 Which one of the following amounts represents the maximum amount that Ms. Chiu can deduct as moving…On July 1, 2020, Arabi Sheikh established an interior decorating business. During the month, Arabi Sheikh completed the following transactions related to the business: July 1: Arabi transferred cash from his personal account and invested it for business use, $23500. July 10: Purchased a truck for $14900, paying $7200 cash and the remainder will be paid in the future. July 12: Paid annual premiums on property and casualty insurance (advance), $2570. July 17: Paid creditor a portion of the amount owed for truck purchased on July 10, $4220. July 20: Completed services on account and billed the customer, $7310 July 25: Received cash from customers on account, $3520. July 31: Paid salaries expense of $460 and utilities expense of $300. (a) Journalize the above transactions for the month of July (b) Prepare ledger accounts in running balance format (c) Prepare trial balance at 31 July 2020