4. Answer the questions about accounting treatment. 1. Explain what are the differences if accrual or cash accounting is used to account for the following hypothetical situation (explain the concept using the matching principle and illustrate with numbers each accounting treatment): Marie went to City Hall to pay for the following: Booth Permit ($40.00), Cleaning deposit ($200.00 ) which refundable after the booth area is clean, City of Montreal Health Inspection fee ($150.00), and the Water, Drain, and Electricity connections and dismantle after the event ($200.00). 2. Explain what are the differences if accrual or cash accounting is used to account for the following hypothetical situation (explain the concept using the matching principle and illustrate with numbers each accounting treatment): At Pepsi Marie ordered on account a total of 100 cases of soft drinks, to be delivered half on Thursday and the other half on Saturday, for a $7.99 a case plus a $2.40 per case deposit Prepare the Income Statement (accrual basis) for the Month of July. (Round your answers to 2 decimal places. Leave no cells blank - be certain to enter " 0 " wherever required.) Prepare the Balance Sheet (accrual basis) as of July 31st. (Round your answers to 2 decimal places. Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter " 0 " wherever required.) Fundralsing Oportunlty. You are In your second year in the BCom program at York Unlversity and came back home for the summer. In past summers you have hold several part time jobs. In your spare time, you are a very active fundralser for Paws Support and thelr International missions. You had the fundralsing Idea of operating a booth to sell soft drinks, coffee, crolssants, and other baked goods In the library park where all community events are held between May and August. They Include all sorts of nelghbourhood partles that showcase local street art dealers, performers, local shoppes and artists. You approached Paws Support with the Idea and a week later you got the approval to create the booth and were glven a $1,400 advancement to cover the start up costs. Once you got the funds on May 1st, planning started. Among the actlvitles performed you got donations, permits, signage, tent, display cases, water, electrical connections and the municipal permit for the booth. One of the first steps is to pay In cash on May 1st to the Municipality for the booth permit (cost $280 for the season, 1 day or 4 months same cost, so it is expensed in May) and cleaning fees (pay for a refundable deposit of $140 that will be returned on August 31st If the boot recelves no ticket from the municipality Inspectors). You were elated because the Library will allow your booth to conect and use the Library utilliles. Water, Draln, and Electricity connections, use and dismantle after the event had a cost of $350 per month pald in cash on the last day of each month, first payment on May 31st. This fee Includes safe storage of the booth and equipment during week days. Next stop was at Equipment Rental to rent display cases, portable sink, warming oven, refrigerator, tables, two coffee markers, and a cash register for $210 per month. For the month of May add $140 for a refundable deposit that will be relmbursed after all the equipment has been returned In good shape (reduce the rent payable on Sep 5th ). Rent is due on the fifth day of the following month (May payment and the deposit are due on June 5th ). On May 1st you ordered a Booth Tent that will last three summers (12 months) for $420 and signage for the booth for $140 that is Immedlately expensed, pald for both with your MasterCard whose balance will be due on July 2nd. A total of $1,050 has been preorder on May 1st for coffee, coffee cups, Ilds, and stir Stlx. Dellvery scheduled for May 10th, one third of the total purchase has been used in the month of July. Payment of 50% each are due on May 15th and July 15th. At General Drinks you ordered on account a total of 70 cases of soft drinks per month, to be delivered on the first of each month, for a $3.9 a case. Payment for the total of four months is due on June 30th. At the end of the month there were 6 cases In Inventory. You spoke to the owner of the local bakery to source Crolssants and other assorted baked goods to sell for the fundralser. You agreed on dally deliverles on Fridays, Saturdays and Sundays for a total of 210 unlts per month. You will pay $1.0 for each Item on the last day of the month. If demand is high, you will phone the bakery and more unlts will be dellivered on site after 8pm for free. When needed you go to the local supermarket to purchase Coffee Creamer, Sugar and Milk, paylng $70 cash during the month. All is used In the month. Every Frlday morning you start setting everything up. You have been lucky to recrult other volunteers that will help you set up, manage and dismantle the booth every weekend. You got a schedule that guarantees a minimum of 2 people in the booth at any time. The events during July were successful, everything was sold with only slx full cases of soft drinks left. Sales of Items for the month was $2,800, there was a donation Jar that had $840 which was deposited at month end In the bank. The cash advance will be returned on September 10th together with the total funds ralsed in the summer. To solve the problem assume the opening balance for the month is $1,960 for cash, $630 for Coffee, coffee cups and lids and $1,071.00 for retained earnings. The opening balance of Beverages Inventory is zero. Complete this question by entering your answers in the tabs below. Prepare the statement of proof of cash by July 31st. (Round your answers to 2 decimal places. Leave no cells blank - be certain to enter "0" wherever required.) 4. Answer the questions about accounting treatment. 1. Explain what are the differences if accrual or cash accounting is used to account for the following hypothetical situation (explain the concept using the matching principle and illustrate with numbers each accounting treatment): Marie went to City Hall to pay for the following: Booth Permit (\$40.00), Cleaning deposit ($200.00 ) which refundable after the booth area is clean, City of Montreal Health Inspection fee ($150.00), and the Water, Drain, and Electricity connections and dismantle after the event ($200.00). 2. Explain what are the differences if accrual or cash accounting is used to account for the following hypothetical situation (explain th concept using the matching principle and illustrate with numbers each accounting treatment): At Pepsi Marie ordered on account a total of 100 cases of soft drinks, to be delivered half on Thursday and the other half on Saturday, for a $7.99 a case plus a $2.40 per case deposit