Old MathJax webview

Old MathJax webview

Financial information relating to 2020 is as follows: A) Land adjacent to the gift shop was purchased with a $200,000 bank loan during the year to allow for an outdoor sales area during warm weather. The Interest expense on the loan for the year was $7.000 and there to finance the loan was 51.500. Both the interest and the appraisal fee were expensed by AWO Gift Ltd. in 2020. B) The company hired a contractor to landscape the land. The $2.000 invoice for the landscaping was paid in full in 2020 and it was entered as a capital property on AWO Gift ids Balance Sheet C) During the year, a new shelf (furniture) worth $4,000 was purchased for the shop and expensed on the books. D) Amortization expense of 530,000 was deducted during the year. Total CCA for the year should be $28.000, and is not reflected in the financial statements. (Assume that the CCA amount given is the correct amount and the al adjustments required. You are not required to calculate CCA amount separately for this question) E) The following were also fully expensed during the year: Meals with clients $1.000 Golf dues for employees 1.500 A reasonable reserve for bad debt 2.000 interest paid to CRA for late income tax installments 700 5.000 Donation to registered charity F on December 30, 2020. the AWO Gift Ltd's president announced a bonus to be paid to the company's key employee in the amount of $8,000 which was expensed in the books that day. They in two equal payments of $4.000. to be issued on January 30, 2021 and July 30, 2021 Financial information relating to 2020 is as follows: A) Land adjacent to the gift shop was purchased with a $200,000 bank loan during the year to allow for an outdoor sales area during warm weather. The Interest expense on the loan for the year was $7.000 and there to finance the loan was 51.500. Both the interest and the appraisal fee were expensed by AWO Gift Ltd. in 2020. B) The company hired a contractor to landscape the land. The $2.000 invoice for the landscaping was paid in full in 2020 and it was entered as a capital property on AWO Gift ids Balance Sheet C) During the year, a new shelf (furniture) worth $4,000 was purchased for the shop and expensed on the books. D) Amortization expense of 530,000 was deducted during the year. Total CCA for the year should be $28.000, and is not reflected in the financial statements. (Assume that the CCA amount given is the correct amount and the al adjustments required. You are not required to calculate CCA amount separately for this question) E) The following were also fully expensed during the year: Meals with clients $1.000 Golf dues for employees 1.500 A reasonable reserve for bad debt 2.000 interest paid to CRA for late income tax installments 700 5.000 Donation to registered charity F on December 30, 2020. the AWO Gift Ltd's president announced a bonus to be paid to the company's key employee in the amount of $8,000 which was expensed in the books that day. They in two equal payments of $4.000. to be issued on January 30, 2021 and July 30, 2021