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x Question 6.1.28 HO Austin Scott the sole shareholder of Scon tarpeista rutt shop ating kacally made are and crafts. The pen operation for rest yn cadw you to provides you were for the corporation for December 31, 2000 Click on the icon to view the income statement click on the con to view the notes to the income) Call the reness come for the year 2030 Colete the new come for the Enterprises to 2020. edhe The net income to 2020 ** i Income statement Scott Enterprises Ltd. Income Statement For the year ended December 31, 2020 Income Sales 610,000 Cost of sales $ 51,000 244,000 Opening inventory Purchases 295,000 56,000 239,000 Closing inventory Gross profit 371,000 2,800 Expenses Accounting and legal (Note 2) Advertising and promotion (Note 3) Depreciation (Note 4) 5,600 26,800 Automobile expenses 7,600 3,000 Bad debts (Note 5) Insurance (Note 6) 7,800 Interest 18,400 12,000 Office expenses (Note 7) Rent 37,500 108,000 229,500 Wages and benefits (Note 8) 141,500 Net income Print Done * Income statement - a small retai Jas a calendar i Notes to income statement en or 1. 2. For 3. 4. Scott Enterprises Ltd. is a small business corporation operated by the sole shareholder, Austin Scott. Accounting and legal includes legal fees related to Austin's dispute in regards to a personal car accident in the amount of $1,980. Advertising and promotion includes 'Meals and Entertainment costs in the amount of $4,220. Information for Capital Cost Allowance (CCA) purposes-the Undepreciated Capital Cost (UCC) at December 31 of the prior year was as follows: Class 8 (Office & General Equipment): $45,100 Class 10 (Automotive Equipment): $24,800. The company has set up an allowance for doubtful accounts based on a review of the Accounts Receivable at December 31 of the current year. This is a procedure that the proprietorship follows every year. Insurance includes life insurance premiums for Austin Scott in the amount of $2,800. This life insurance policy is required as collateral for the business bank loan Office expenses include the $5,800 purchase of laptop computers on January 15, 2020 Wages and benefits includes the club dues/membership fees paid to the Royal Oak Club in the amount of $5,940. The club dues are paid for the five managers who take clients to the Royal Oak Club on a regular basis for business purposes. 5. 6. 7. 8. Print Done

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