Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question The income statement has been prepared by Daisy Ltd ' s accountant for the current year ending December 3 1 , 2 0 2
Question
The income statement has been prepared by Daisy Ltds accountant for the current year ending December is as follow:
Sales
Cost of goods sold
Gross Profit
Operating Expenses
General and administrative expense Note
Meal and EntertainmentNote
Interest expense Note
Repairs and Maintenance
Amortization expense Note
Operating Income
Other Income and expense:
Interest Income
Insurance expense Note
Landscaping expense Noet
Loss on disposal of limited life licence
Leasehold Improvement
Income before income tax expense
Income tax expense
Net Income
Notes:
General and administrative expense include:
Donations to registered charities
Accrued bonus
Accrued September, paid January
Payroll Expenses
Accounting and legal fees for amendments to articles of incorporation
Meals and entertainment expenses:
Memberships at golf club for salespeople
Meals while enteretaining clients
Annual summer BBQ for all staffs
Christmas party for all staff accommodation $ and meals $
Interest expese paid to CRA due to late payment of tax owing
Interest expense paid to Bell Canada due to late payment of January's bill
Daisy Ltd follows a policy to claim the maximum CCA on all depreciable properties. The UCC balances as of January are as follows:
Class
Class
Class
Class
a In a limited life licence to produce and sell costumes based on a popular theme park was sold for $ The original cost of this licence was $ and its carrying value at the time of sale was $ The licence was the only property in class
b Daisy Ltd purchases land and constructed a new office building on it during the year. An election was made to include the building in a separate class The cost of the land was $ and the building cost $ to construct.
c New furniture for the reception area was acquired during the year for $ Additionally, some outdated desks previously used by the finance department, with a cost of $ were sold for $ The net book value is also $; consequently, no gains or losses are recorded in the accounting records.
d The company purchased a fuel car worth $ for one of the salespersons to use for employment purposes.
e The company leases a building for $ per year that houses a portion of its manufacturing operations. The lease was negotiated on January and has an original lease term of five years. There are two renewal options on the lease, each for two years. The company made $ of leasehold improvements in immediately after signing the lease. No further leasehold improvements were made until the current year
Includes the annual insurance premiums amount to $ for Daisy's life insurance plan and $ for the business plan, aimed at safeguarding the business properties.
The company expensed $ for landscaping its main office building instead of capitalizing it due to its relatively low cost, as decided by the finance director.
Requirement:
PART I : points
Using an Excel workbook to prepare the Capital Cost Allowance CCA schedule and the UCC Undepreciated Capital Cost balance for Daisy Ltd
PART II: points
"Using an Excel workbook preapre a reconciliation schedule for Daisy Ltd Calculate the minimum net income for the taxation year for Daisy Ltd Provide a brief description of the items that are not included in your calculations.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started