Question
Woodvine Day Camp is a cooperative camp, formed over forty years ago to serve children in the Laurentian community of Lanthier. In recent years enrollment
Woodvine Day Camp is a cooperative camp, formed over forty years ago to serve children in the Laurentian community of Lanthier. In recent years enrollment has been decreasing, largely due to parent financial inability to rent summer cottages. A sleep over camp, in the area, has approached the board of directors of Woodvine with the offer to provide a day camp on its premises, to replace Woodvine. This has caused an uproar at Woodvine, with some parents saying the day camp is still viable and should continue. You, are currently employed as a financial analyst with a mining company. Having sent your children to the camp, you joined Woodvine's board of directors two months ago. Woodvine's volunteer board consists of seven individuals from various professions. The former treasurer recently moved to another province. As the only accountant on the board, you were elected the new treasurer. You have been asked to provide a report in which you will prepare the financial statements for the fiscal year ending August 31, 2022, in accordance with GAAP and will provide an assessment as to whether the camp is in fact viable. The statements will be reviewed by an accountant this year for the first time, to ensure that everyone accepts the results. Members of the board of directors have also approached the City of Lanthier to discuss the option of the city taking over the camp and managing it through the municipality. The members of the board would like to understand the reporting implications in that case. Woodvine's operating staff consists of Nancy Drake, the Director of Programs, Sandy Moller, the part- time bookkeeper, a receptionist/administrative assistant, and six part-time program facilitators. Below is the Balance sheet of Woodvine as at August 31, 2022: Assets Cash $15,000 Accounts receivable 2,000 Inventory 8,000 Equipment - net 25,000 Building - net 20,000 $70,000 Liabilities Accounts payable $ 2,300 Deferred revenue 14,000 $16,300 Net assets $53,700
The following additional information for fiscal 2022 is provided: 1. The camp pays rent to the land owners in the amount of $6,000 per year. In 2022 the land owners forgave this obligation. The landowners are the original founders of Woodvine Camp. 2. In 2022 total registration revenue was $35,000 of which $1,000, from a family that has had children in the camp for many years, has not been collected. The balance from last year was collected this year. The number of children enrolled varies during the summer but peaked at 85 campers. The youngest group had the largest number at 20 children. Several parents indicated that many people had children who were almost old enough to start the camp. 3. Total salaries paid to counsellors and staff were $11,000. 4. Local stores donated food for all the cookouts. The fair value of this food is $1,500 which is the selling price of this food in the store. 5. The building is a barn that was built five years ago and is being depreciated over twenty five years. (20 years remaining). When the barn was built Woodvine had received a restricted donation of $17,500. 6. Woodvine pays the caretaker $3,500 each summer for maintenance of the property. 7. Woodvine held a carnival during the summer. It raised $4,200 in admission and food concessions. It cost $1,300 to rent the games and $800 to buy the food. Woodvine received $800 worth of art for the auction which was sold for $1,200. Volunteers provided all of the labour. 8. The equipment consists of canoes and kayaks which have a remaining useful life of five years. 9. The inventory is primarily sports equipment. Although the counsellors are supposed to count the inventory at year end they could only find about one half of the inventory that was on the list. 10. Woodvine paid its outstanding accounts payable during the year.
Required: 1. Prepare the report that is requested by the board of directors.
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Answer Woodvine Day Camp Treasurers Report Fiscal Year Ending August 31 2022 Introduction Woodvine Day Camp has been a cornerstone of the Laurentian c...Get Instant Access to Expert-Tailored Solutions
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