Mastering Task-Based Simulations in Intermediate Financial
School
University of Prince Edward Island**We aren't endorsed by this school
Course
ACC 221
Subject
Accounting
Date
Dec 12, 2024
Pages
3
Uploaded by PresidentRiverGull34
© Chartered Professional Accountants of Canada. All rights reserved. No part of this publication may be reproduced or transmitted, in any form or by any means, without the prior written consent of CPA Canada. For information regarding permissions, please contact permissions@cpacanada.ca. 2023-08-14 INTERMEDIATE FINANCIAL REPORTING 1 UNIT 5 — TASK-BASED SIMULATION #2 Simulation (15 minutes) Best Taco Eats Ltd. (BTE) is a private company that owns and operates a chain of restaurants. The restaurants are open for lunch and dinner and are also available for parties and events. BTE follows ASPE in preparing its financial statements. Harriet Waters is an accountant who works as a consultant and is currently helping to prepare BTE’s financial statements for the year ended December 31, Year 1. The following documents are attached: •Appendix I: BTE’s corporate structure and shareholders•Appendix II: Email from Jamal Khaira, CFOComplete the tasks in the Excel Task file.
Intermediate Financial Reporting 1 — Unit 5 — Task-Based Simulation #2 Simulation2 / 3Appendix I: BTE’s corporate structure and shareholders BTE’S CORPORATE STRUCTURE AND SHAREHOLDERS The management team of BTE includes Camilla Perez, CEO, Frank Morris, COO, and Jamal Khaira, CFO. The management team meets regularly and makes all the operating, financing, and strategic decisions. Catering Corp. caters corporate and private events. T-shirt Corp. is a company that sells T-shirts with corporate logos and otherclothing for corporate marketing purposes. Although BTE has invested funds,giving T-Shirt Corp. 15%, it is a silent partner and leaves all decisions to the othershareholders of the company.Cooking School Inc. runs regular cooking classes throughout the year. Camilla is very active in this school and very involved in making the day-to-day decisions. Camilla Perez 10% 22% 90% 70% 15% Suzanne Kilton Cooking School Inc. BTE T-shirt Corp.Catering Corp.
Intermediate Financial Reporting 1 — Unit 5 — Task-Based Simulation #2 Simulation3 / 3Appendix II: Email from Jamal Khaira, CFO Subject: Purchases from FBLJanuary 6, Year 2TO: Harriett Waters FROM Jamal Khaira, CFO Harriett, During December Year 1, BTE purchased a variety of baked products from FBL that were used in preparing customers’ meals. The book value of this food purchased from FBL was $7,000. FBL would normally have sold these products for $9,200. In return, BTE hosted FBL’s holiday event at the restaurant. The event cost BTE $7,200 (per the work-in-progress account for the event), and normally the selling price of this event would have been $9,000. BTE and FBL agreed to an exchange amount of $9,000. Jamal