Assignment about Calculation of Profit

SOLUTION
Calculation of profit/ loss for the Bruno and Sylvia separately
INCOME FROM BUSINESS
Revenues 72,980.77
Membership dues - Business Writers’ Association 461.00
Business insurance (606.65)
Bank service charges (110.00)
Charitable donation to United Way 1,500.00
Cell phone air time (for business) 960.50
Postage and courier charges (162.00)
Supplies (1,760.73)
Separate business phone line charge (798.69)
Fees for accounting and tax advice (1,275.00)
Air fare (business travel) 2,520.71
Hotels (business travel) 1,308.21
Meals when traveling on business 1,375.23
Meals and drinks when entertaining clients 3,879.20
Golf green fees while playing with clients 750.00
UCC of furniture - beginning of year (Class 8) (2,350.00)
UCC of computer application software (Class 12) – beg. of year (824.00)
UCC of computer hardware (Class 50) - beginning of year (2,640.00)
Application software purchased December 1, 2019 (2,006.00)
Laptop computer purchased July 1, 2019 (2,449.00)
70,753.55
Business Use of House Costs:
Area of home used for business (square feet) (300.00)
Total area of home (square feet) (2,700.00)
Gas (2,651.51)
Electricity (1,343.93)
Insurance – house (1,500.44)
Snow plowing contract (500.00)
Furnace repairs (1,500.00)
Painting of house interior (2,400.50)
Mortgage interest paid to Royal Bank (8,725.83)
Mortgage life insurance premiums (not for collateral) (600.00)
Mortgage principal paid (3,750.50)
Property taxes (5,106.64)
Interest on late property taxes (25.83)
(31,105.18)
Vehicle Costs: (all annual costs)
Parking (391.15)
Gas (3,050.00)
Maintenance and repairs (654.54)
Car insurance (1,789.00)
License and registration fees (84.00)

UCC of Class 10.1 - beginning of year (15,550.00)
(21,518.69)
demand loan interest and penalties 2019
Interest on credit cards for business expenses (475.23)
Interest on loan to buy laptop and software for business (226.17)
Interest on loan to make 2018 RRSP contribution (195.90)
Interest on loan to purchase Big Gain Ltd. shares (4,200.00)
Interest & penalty on late payment of 2018 income tax (153.75)
Interest on insufficient tax instalments for 2019 (28.85)
Interest on late GST/HST payments (90.92)
(5,370.82)
Rental Income
Address – 767 Stampede Street, Calgary, AB, T3M 5G5
Gross rents 18,000.00
Property taxes (5,625.00)
Insurance (1,990.00)
Utilities (1,245.00)
Interest on mortgage (4,768.22)
Payment on principal (3,149.44)
Repairs and maintenance (3,262.43)
Snow removal and landscaping annual contract (600.00)
(2,640.09)
SUMMARY
FROM BUSINESS
Revenue 91,549.62
Purchases (9,168.07)
Expenses (52,623.87)
Interest paid on demand loan (5,370.82)
PROFIT 24,386.86
FROM RENTAL PROPERTY
Income 18,000.00
Expenses (20,640.09)
Loss (2,640.09)
Sale proceeds from investment shares (Canabis Solutions Inc. 25,000.00
Profit 25,000.00
Gross Profit 46,746.77
Sylvia
Income T5
T5 BOX Slip 1 Slip 2
Issuer Flower Corp. TD Bank
Recipient Sylvia Joint 50% each
Actual amount of eligible dividends 24 2,000.00
Taxable amount of eligible dividends 25 2,760.00
Interest from Canadian sources 13 ($1,010.12)