Fashions Ltd. is a Canadian controlled private corporation with its head office in Vancouver, BC. The company manufactures clothes and sells to Canada and the United States.

Fashions Ltd. was incorporated in 2014 and has a sole shareholder, Barbara Bradford. Barbara Bradford, a fashion expert, also prepared the accounting records for Fashions Ltd.

Fashions Ltd. Income Statement For The Year Ended December 31, 2017 Sales $7,600,000 Cost Of Goods Sold (5,800,000) Gross Prot $1,800,000 Expenses: General 8: Administrative Expense ($840,400) Amortization Expense (525,000) Interest (10,000) (1,375,400) Operating Income $424,600 Other Income: Loss On Disposal Of Limited Life Licence (15,000) Gain on Sale of Lexus 130,000 Interest Income 120,000 Income Before Income Taxes $659,600 Current ($180,000) Future (40,000) (220,000) Net Income $439,600 Office Salaries, Excluding Bonuses $377,000 Bad Debts Expense 23.000 Travel Costs 96,600 Donations to Registered Charities 25,000 Accrued Bonuses - Accrued September 1, 2017, Paid July 15, 2018 80,000 Meals & Entertainment Costs: $ 1,000 per month for premium membership at a golf club for Barbara 12,000 $ 400 per month for memberships at a golf club for sales staff 4,800 Meals entertaining clients 36,000 Food costs for Barbara's personal chef for her meals at home 7,000 Annual summer barbecue for all staff 10,000 Sponsorship of various theatre productions that wear clothes from Fashions Ltd. 85,000 Advertising in a U.S. theatre magazine directed at U.S. clients 12.000 New software purchased on July 23, 2017 ($ 10,000 for applications and $ 35,000 for systems) 45,000 Accounting & legal fees for amending the company's articles of incorporation 8.000 Costs to attend an annual convention (held in Venezuela ) of costume designers 19.000 Total General & Administrative Expenses $840.400Interest Expense - Operations $5,000 Penalty & interest for late and insufficient instalment payments 3,000 Interest on late payment of municipal property taxes 2,000 Total Interest Expense $10,000Cash 75,000 Accumulated Amortization 10,000 Loss on Disposal of Limited Life Licence 15,000 Licence 100,000