Fundraising Opportunity Marie Page

Marie Page is in her third year in the BCom program at York University and has gone back home for the summer in Montreal. During her high school years, she worked part time at "Croissant Croissant" which is a small family owned bakery in Montreal. In her spare time, she is a very active fundraiser for the Canadian Cancer Society (CCS) both in Toronto and Montreal working in different events.

Marie had an idea for operating a booth to sell, soft drinks, coffee, Croissants, and other baked goods at the Branle-Bas d'Hochelaga for a fundraising opportunity with volunteers operating the booth for the Canadian Cancer Society. Branle-Bas d'Hochelaga is an annual community four-day event held on the last weekend in May that is a neighbourhood party that showcases its local street art dealers, performers, local shoppes and artists.

A week later she got the approval to create the booth and was given a $1,280advancement to cover the start up costs from the Canadian Cancer Society.

Once she got the great news Marie started to plan, getting donations, permits, signage, tents, display cases, water, and electrical connections and getting the permits for the booth. The next morning 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). Total fees paid to the City of Montreal was $590.00 in cash.

Next stop on her busy day was at Gamma Equipment Rental to rent display cases, Portable sink, warming oven, refrigerator, tables, two coffee markers, and a cash register for $800.00 COD which included a $128 refundable deposit after the equipment has been returned.

At home Marie ordered a Booth Tent that will last five years for $600.00 to be delivered to her house and paid for this on her MasterCard. She also ordered signage for the booth for $120.00 that has a life of four years and paid for this on her MasterCard. She also called a friend that is the Marketing Manager at Van Houtte Coffee, the company will be donating over $2,900.00 of coffee, coffee cups, lids, and stir Stix for the fundraiser. Marie's friend at Van Houtte Coffee recommended to call Pepsi for soft drink. At Pepsi Marie ordered on account 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, during the order Pepsi said that they will donate 15 cases of soft drinks on top of the 100 ordered, 2,700 soft drink cups, and lids. This saved Marie over $400.00, the only thing she has to pay for is the deposit on the donated cases.

Marie spoke to the owner of Croissant Croissant where she has worked part-time for over six years for Croissants and other assorted baked goods to sell Branle-Bas d'Hochelaga fundraiser. She will need morning deliveries of 10 dozen for Thursday, 15 dozen for Friday, 17 dozen for Saturday and 15 dozen for Sunday for a total of 57 dozen. Marie will pay Croissant Croissant the cost of material of $0.84 for each item on the Monday after the even has finished.

Wednesday the day before the event Marie went to COSTCO to purchase Coffee Creamer, Sugar, Milk and Straws, paying $64cash.

Wednesday night everything was delivered, and the volunteers and Marie started setting everything up.

Saturday morning Marie realized that she may not have enough Cream, sugar, and milk, so she went to COSTCO to purchase these items for $95.00 by paying cash for this.

The event was very successful everything was sold with only six full cases of soft drinks left which we can take back to Pepsi for a full refund. Sales of items for the four days was $11,323.00, there was a donation jar that had $1,216which was deposited Sunday night in the bank.

Required:

Accrual Balance Sheet (Statement of Financial Position)

Answer the questions about accounting treatment

Cash Booth Permit Cleaning Deposit Health Inspection Fee Utilities Equipment Rental Tent Accumulated Depreciation Tent Signage Accumulated Depreciation Signage Coffee, coffee cups and lids Beverages Baked Goods Coffee creamer, sugar, milk and straws Total assets Booth Permit Payable Health Inspection Fee Payable Utilities Payable Equipment Rental Payable Tent Payable Signage Payable Beverages Payable Baked Goods Payable Cancer Society Advance Total Liabilities Retained earnings Total Liability plus EquityExplain what are the differences if accrual or cash accounting is used to account for the following situation (explain the concept using the matching principle and illustrate with numbers each Question 1 accounting treatment): The next morning 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). Answer Explain what are the differences if accrual or cash accounting is used to account for the following situation (explain the concept using the matching principle and illustrate with numbers each Question 2 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. Answer 2