EXERCISE 2.1: WEB QUEST When setting up a chart of accounts for a business, it is often helpful to review the tax form that the business will use. Then accounts can be used to track information needed for the business tax return. The tax form used by the type of organization is listed below.
| Type of Organization | Tax Form | | Sole Proprietorship | Schedule C (Form 1040) | | Partnership | Form 1165 & Schedule K-1 | | Corporation | Form 1120 | | S Corporation | Form 1120S |
In this Exercise, you will download a tax form from the Internal Revenue Service web site. Step 1: Go to the Internal Revenue Service web page: www.irs.gov Step 2: As shown above, a sole proprietorship files tax form Schedule C that is attached to the individual's Form 1040 tax form. Print the tax form Schedule C: Profit or Loss From Business (Sole Proprietorship). Step 3: Circle Advertising Expense on the Schedule C.
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