Question

Bill operates a proprietorship using the cash method of accounting, and this year he received the following: $170 in cash from a customer for services rendered this year a promise from a customer to pay $186 for services rendered this year tickets to a football game worth $215 as payment for services performed last year a check for $184 for services rendered this year that Bill forgot to cash How much income should Bill realize on Schedule C

Answer 1

Answer:

$569

Explanation:

Cash from a customer for services rendered $170

Tickets to a football game worth $215

Check for services rendered $184

Total $569

Therefore Bill should realized income of $569 on Schedule C because Income is realized as property is received but the promise to pay is not property (unless accompanied by a note receivable).