ACC 642
Assignment 1 – Winter 2024
Due Friday, February 9, 2024, at 8 AM
Taxguy Inc. is a manufacturer and distributor of
income tax textbooks. Major Business Activity
Number = 611710
The company was incorporated on 1st January
2015
BN = 342342342 RC0001
Address: 125 Markham Rd, Toronto, Ontario, Canada, M9W 6K5
Taxguy Inc. is a Canadian-controlled private corporation (CCPC) and only operates in
Ontario.
The income statement and Balance sheet are given below for the year ended June 30, 2023
The President and Signing Officer is Dr. Sara Joseph (ignore SIN), and she owns 100% of the
Common Shares
TAXGUY
INC.
Income Statement
TAXGUY INC.
Balance
Sheet
Year Ended June
As at June 30,
30, 2023
2023
Revenue
2,458,200
Interest Income
65,000
Total Income
2,523,20
Expenses
Accounting
6,500
Advertising
12,645
Rent Expense
24,456
Bank Service Charges
6,476
Courier
2,156
Training Fees
4,658
Insurance Expense
6,875
Interest
5,524
Purchases
1,274,000
Meals and Entertainment 32,450
Office Expenses
46,582
Office Supplies
64,789
Salaries and Wages
604,000
Professional Fees
16,500
Depreciation Expense
50,000
Repairs and Maint.
28,756
Travel Expense
12,540
Income Tax Expense
26,585
Total Expense
2,225,492
Net Income after taxes
297,708
Bank
Inventory
Account Receivable
Furniture and Equipment - Cost
Acc. Depreciation - Furniture and Equipment
Other Assets
TOTAL ASSETS
LIABILITIES & EQUITY
Liabilities
Bank Overdraft
Accounts Payable
Shareholder’s Loan
Total Liabilities
Equity
Capital Stock
Retained Earnings -Start of Year
Net Income
Cash Dividends Paid
Retained Earnings -End of Year
Total Equity
TOTAL LIABILITIES & EQUITY
312,058
102,000
195,350
200,000
(50,000)
47,200
806,608
55,000
168,500
73,000
296,500
10,000
252,400
297,708
(50,000)
500,108 500,108
510,108
806,608
ADDITIONAL INFORMATION:
1. Interest and Penalties included in interest
1,500.00
2. Donations to MS Society included in Advertising 6,200.00
3. Furniture addition July 1, 2022,
200,000.00 – Eligible for immediate
expensing – Class 8
4. UCC for Class at the beginning of year
0.00
5. Interest Income is incidental and considered part of the active business income
REQUIRED:
1. Change the Company name to a unique name.
2. REQUIRED: Prepare the 2023 tax return, minimizing federal tax payable,
using CANTAX T2-2023 software.
3. These files MUST be submitted on Blackboard – not by email.
1. The full T2 in PDF form
2. The actual Cantax T2 file – VERY IMPORTANT!
4. You get to do two submissions on Blackboard – the second one will count and be marked.
REMEMBER TO CHECK DIAGNOSTICS!