Case Study - Part A

Case Study – Part A
FIN7230_010

Ms. Tyrell, company president and your employer, has asked you to prepare a financial statement package at the end of her first year of business. She will need these financial statements for an important board of directors meeting that will be held at the end of October. She will need to review the statements prior to this meeting.

A professional financial statement package is to be submitted to Brightspace as per the Case Study – Part A due date.

Instructions:
1. This is an individual assignment.

2. Using the company information provided by Ms. Jasmine Tyrell, prepare in Excel a statement of income, statement of changes in equity, and statement of financial position for the year ending December 31, 2022.

(NOTE: create 1 Excel file with 3 worksheet tabs representing each financial statement).

3. Submit your Excel financial statement package on Brightspace using the Case Study Part 1 assignment link.

4. You must include your first and last name in cell A1 on each tab of your Excel spreadsheet.

Marking:
Marks will be awarded for accuracy and presentation of each financial statement using the marking rubric for this Case Study.

Company Information:
Ms. Jasmine Tyrell, a former professional softball player, started Field of Dreams Ltd, a softball camp for underprivileged children from ages 6 to 16. Eventually, she would like to open softball camps across the province of Ontario.

Jasmine has asked you to prepare financial statements at the end of her first year of operations to present to a board of directors with the intent of securing further funding for expansion of the camps. She tells you the following facts about the start-up and first year of her business activities.

To get the business off the ground, Jasmine made the decision to incorporate her camp and to follow the IFRS for accrual-based accounting.
She sold common shares to herself on January 1, 2022, in the amount of $5000 through the sale of 500 of these shares.

In addition, the company borrowed $10,000 on a 10-year term loan from the Royal Bank of Canada.

A used bus was purchased for $12,000 cash to be used for transporting the camp participants.

Bats, baseballs, gloves, and other miscellaneous equipment were purchased with $1,500 cash.

The company earned camp tuitions of $100,000 during the year but has collected only $90,000 of this amount so far.

Thus, at the end of the year, the company was still owed $10,000 in accounts receivable.

The company rents time at the local ball diamonds owned by the town of Pembroke at Riverside Park.

Total field rental costs during the year were $14,000, insurance was $6,000, salaries for coaching staff were $20,000, and administrative expenses were $7,000 – all of which were paid in cash.

The company incurred $800 in interest expense on the bank loan, which it still owed at the end of the year.

The company also owes $10,440 in income tax.

The company paid Jasmine dividends of $35,000 rather than a salary during the year.

The balance in the corporate bank account as at December 31, 2022, was $9,500.