James' Specialty Bike Shop Statement of Revenues and Expenses For the year ending on December 31, 2017 Revenues Motorcycle and Parts Sales $450,000 Expenses Purchase of inventory $175,000 Subcontractors-specialty painting 75,000 Local Advertising 2,500 Golf club dues (Note 5) 2,500 Business licences 1,500 Fines and penalties (Note 6) 2,700 Insurance (Note 7) 7,500 Office expenses 1,000 Home Office expenses, not including CCA (Note 8) 2,530 Business phone 2,000 Bank and interest charges (Note 9) 4,950 Salaries (Note 10) 72,000 CPP and El contributions (employer portion) 4,845 Depreciation 29,750 Loss on sale of equipment (note 4) 3,250 Property taxes on shop 3,100 Gas & maintenance (Note 11) 6,500 Total Expenses $396,625 Net Profit (Loss) for accounting purposes $3,375 Note 5: James joined the local golf club so that he could find new customers. His golf membership cost was $2,500 for the year. Note 6: In 2016 James' Specialty Bike Shop was charged a penalty for selling branded motorcycle products without having the proper authorization as a licensed distributor. James signed a new distributorship agreement in late 2017 and agreed to pay a ne of $2,700 to the brandname owner for previous unauthorized transactions. Note 7: The insurance expense includes the cost of the truck insurance of $1,500 see Note 11 below