In july of this year, Stephen started a proprietorship called ECR ( which stand stand for electrict car repair) ECR uses the cash method accounting, and stephen has produced the following financial statements for this year. ECR collected $81,000 in cash for the repair completed during the year and additional of $3,200 in cash for repairs that will commence after the year end. Customer owe ECR $14,300 for repairs complete this year. Although Stephen is not sure which bill eventually be paid, he expect to collect all but about $1,900 of these revenue next year. ECR has made the following expenditures. . Interest expense $ 1,250 .shop rent ($1,500 per month) $ 27,000. Utilities $ 1,075 . Contract labor $8, 250 .Compensation $21,000 .Liability Insurance premium ($350 per month) $4,200 .Term life insurance premium ($150 per month) $1,800. The interest paid relates to accrued on a $54,00 loan made to stephen in July this year. Stephen used half of the loan to pay 18 months shop rent, and he used the remaing to upgrade his personal wardrobe. In july, stephen purchased 12 months of liability insurance to protect against liability, should anyone be injured in the shop. ECR has only one employee ( the remaing employees are contract workers ) and this employees throughly understands how to repair and electric propulsion system. On November 1 of this year, stephen purchased a 12 month term life policy that insures the life of this key employee. Stephen paid Gecko Insurance company $1,800 in return, Gecko promises to pay stephen $40,000 death benefit if this employee dies any time during the next 12 months. Using TaxAct, Complete the first page of 2019 shedule C for ECR.
In july of this year, Stephen started a proprietorship called ECR ( which stand stand for electrict car repair) ECR uses the cash method accounting, and stephen has produced the following financial statements for this year.
ECR collected $81,000 in cash for the repair completed during the year and additional of $3,200 in cash for repairs that will commence after the year end. Customer owe ECR $14,300 for repairs complete this year. Although Stephen is not sure which bill eventually be paid, he expect to collect all but about $1,900 of these revenue next year.
ECR has made the following expenditures.
. Interest expense $ 1,250
.shop rent ($1,500 per month) $ 27,000.
Utilities $ 1,075
. Contract labor $8, 250
.Compensation $21,000
.Liability Insurance premium ($350 per month) $4,200
.Term life insurance premium ($150 per month) $1,800.
The interest paid relates to accrued on a $54,00 loan made to stephen in July this year. Stephen used half of the loan to pay 18 months shop rent, and he used the remaing to upgrade his personal wardrobe. In july, stephen purchased 12 months of liability insurance to protect against liability, should anyone be injured in the shop. ECR has only one employee ( the remaing employees are contract workers ) and this employees throughly understands how to repair and electric propulsion system. On November 1 of this year, stephen purchased a 12 month term life policy that insures the life of this key employee. Stephen paid Gecko Insurance company $1,800 in return, Gecko promises to pay stephen $40,000 death benefit if this employee dies any time during the next 12 months.
Using TaxAct, Complete the first page of 2019 shedule C for ECR.
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