Aaron McLaughlin is the sole shareholder of McLaughlin Enterprises Ltd., a small retail shop selling locally...

   

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Aaron McLaughlin is the sole shareholder of McLaughlin 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. Aaron provides you with the Income Statement for the corporation for December 31, 2020. 1 (Click on the icon to view the income statement.) A (Click on the icon to view the notes to the income statement.) Calculate the net business income for McLaughlin Enterprises Ltd. for the year 2020. Calculate the net business income for McLaughlin Enterprises Ltd. for 2020. (Round to the nearest dollar.) The net income for 2020 is $. McLaughlin Enterprises Ltd. Income Statement For the year ended December 31, 2020 Income Sales 630,000 Cost of sales 53,000 254,000 Opening inventory Purchases 307,000 Closing inventory 66,000 241,000 Total Cost of Goods Sold Gross profit 389,000 Expenses Accounting and legal expenses (Note 2) 4,400 Advertising and promotion expenses (Note 3) 4,800 Depreciation expense (Note 4) 26,400 Automobile expenses 6,200 Bad debts expense (Note 5) 3,000 Insurance expense (Note 6) 7,400 Interest expense 18,400 Office expenses (Note 7) 11,000 Rent expense 38,000 Wages and benefits expenses (Note 8) 108,000 227,600 Total expenses Net income 161,400 1. McLaughlin Enterprises Ltd. is a small business corporation operated by the sole shareholder, Aaron 2. Accounting and legal incudes legal fees related to Aaron's dispute in regards to a personal car accident in the amount of $1,920. 3. Advertising and promotion includes "Meals and Entertainment costs in the amount of $4,230. Information for Capital Cost Allowance (CCA) purposes-the Undepreciated Capital Cost (UCC) at 4. December 31 of the prior year was as follows: Class 8 (Office & General Equipment): $45,250 Class 10 (Automotive Equipment): $24,800. 5. 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 Aaron McLaughlin in the amount of $2,400. This life insurance policy is required as collateral for the business bank loan. 7. Office expenses include the $4,600 purchase of laptop computers on January 15, 2020. 6. 8. Wages and benefits includes the club dues/membership fees paid to the Royal Oak Club in the amount of $5,920. The club dues are paid for the five managers who take clients to the Royal Oak Club on a regular basis for business purposes. Aaron McLaughlin is the sole shareholder of McLaughlin 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. Aaron provides you with the Income Statement for the corporation for December 31, 2020. 1 (Click on the icon to view the income statement.) A (Click on the icon to view the notes to the income statement.) Calculate the net business income for McLaughlin Enterprises Ltd. for the year 2020. Calculate the net business income for McLaughlin Enterprises Ltd. for 2020. (Round to the nearest dollar.) The net income for 2020 is $. McLaughlin Enterprises Ltd. Income Statement For the year ended December 31, 2020 Income Sales 630,000 Cost of sales 53,000 254,000 Opening inventory Purchases 307,000 Closing inventory 66,000 241,000 Total Cost of Goods Sold Gross profit 389,000 Expenses Accounting and legal expenses (Note 2) 4,400 Advertising and promotion expenses (Note 3) 4,800 Depreciation expense (Note 4) 26,400 Automobile expenses 6,200 Bad debts expense (Note 5) 3,000 Insurance expense (Note 6) 7,400 Interest expense 18,400 Office expenses (Note 7) 11,000 Rent expense 38,000 Wages and benefits expenses (Note 8) 108,000 227,600 Total expenses Net income 161,400 1. McLaughlin Enterprises Ltd. is a small business corporation operated by the sole shareholder, Aaron 2. Accounting and legal incudes legal fees related to Aaron's dispute in regards to a personal car accident in the amount of $1,920. 3. Advertising and promotion includes "Meals and Entertainment costs in the amount of $4,230. Information for Capital Cost Allowance (CCA) purposes-the Undepreciated Capital Cost (UCC) at 4. December 31 of the prior year was as follows: Class 8 (Office & General Equipment): $45,250 Class 10 (Automotive Equipment): $24,800. 5. 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 Aaron McLaughlin in the amount of $2,400. This life insurance policy is required as collateral for the business bank loan. 7. Office expenses include the $4,600 purchase of laptop computers on January 15, 2020. 6. 8. Wages and benefits includes the club dues/membership fees paid to the Royal Oak Club in the amount of $5,920. The club dues are paid for the five managers who take clients to the Royal Oak Club on a regular basis for business purposes.

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