baldar of Coat intense n emalleataichan collinailaalla maad attendente haban ha boa i Notes to income statement 2. 3. 4. Scott Enterprises Ltd. is a small business corporation operated by the sole shareholder, Casey Scott. Accounting and legal includes legal fees related to Casey's dispute in regards to a personal car accident in the amount of $1,940. Advertising and promotion includes 'Meals and Entertainment costs in the amount of $4,240. Information for Capital Cost Allowance (CCA) purposesthe Undepreciated Capital Cost (UCC) at December 31 of the prior year was as follows: Class 8 (Office & General Equipment): $45,400 Class 10 (Automotive Equipment): $25,400. 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 Casey Scott in the amount of $2,600. This life insurance policy is required as collateral for the business bank loan. Office expenses include the $5,600 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 $5,820. 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 TSVUT OUR ATT UTTUTTGIUNOTTOUT VISWT. Question 6.1.28 Question Help Casey Scott is the sole shareholder of Scott Enterprises Ltd., a small retail shop selling locally made arts and crafts. The shop has been in operation for several years and has a calendar fiscal year. Casey provides you with the Income Statement for the corporation for December 31, 2020. (Click on the icon to view the income statement.) (Click on the icon to view the notes to the income statement.) Calculate the net business income for Scott Enterprises Ltd. for the year 2020. Calculate the net business income for Scott Enterprises Ltd. for 2020. (Round to the nearest dollar.) The net income for 2020 is i Income statement X Scott Enterprises Ltd. Income Statement For the year ended December 31, 2020 Income Sales 620,000 Cost of sales $ 51,000 248,000 Opening inventory Purchases 299,000 Closing inventory 64,000 235,000 Gross profit 385,000 4,400 Expenses Accounting and legal (Note 2) Advertising and promotion (Note 3) Depreciation (Note 4) 4,800 25,600 Print Done Done WETU i Income statement - pen in o Closing inventory 64,000 235,000 Gross profit 385,000 4,400 4,800 Expenses Accounting and legal (Note 2) Advertising and promotion (Note 3) Depreciation (Note 4) Automobile expenses Bad debts (Note 5) Insurance (Note 6) 25,600 6,400 4,200 7,400 Interest 19,200 Office expenses (Note 7) 13,000 Rent 38,000 108,000 Wages and benefits (Note 8) 231,000 Net income $ 154,000 Print Done TERET Chec
