No, your Form 1040 is for all income that you receive in 2016.  You should report all income on the same form.

To enter a 1099-MISC, go to Other Common Income>Income from 1099-MISC.  She can also take any expenses generated because of that income.

Depending on whether she intends to keep that business for future years, it may be subject to self-employment tax.

Turbo Tax will ask you questions and file it appropriately according to the answers you give.