Fundraising Opportunity You are in your second year in the BCom program at York University and came back home for the summer. In past summers you have hoid several part time jobs. In your spare time, you are a very active fundraiser for Paws Support and their international missions. You had the fundraising 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 neighbourhood parties 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 opproval to create the booth and were given a $2,600 advancement to cover the start up costs. Once you got the funds on May 1st, planning started. Among the activities 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 $520 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 $260 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 utlities, Water, Drain, and Electricity connections, use and dismantie after the event had a cost of $650 per month paid 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 $390 per month. For the month of May add $260 for a refundable deposit that will be reimbursed 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 $780 and signage for the booth for $260 that is immediately expensed, paid for both with your MasterCard whose balance will be due on July 2nd. A total of $1,950 has been preorder on May itt for coffee, coffee cups, lids, and stir Stik. Delivery scheduled for May 10th, one third of the total purchase has been On May 1st you ordered a Booth Tent that will last three summers (12 months) for $780 and signage for the booth for $260 that is immedlately expensed, paid for both with your MasterCard whose balance will be due on July 2nd. A total of $1,950 has been preorder on May 1st for coffee, coffee cups, lids, and stir Stix. Dellivery 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 130 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 Croissants and other assorted baked goods to sell for the fundraiser. You agreed on dally deliveries on Fridays. Saturdays and Sundays for a total of 390 units 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 units will be delivered on site after 8pm for free. When needed you go to the local supermarket to purchase Coffee Creamet, Sugar and Mik, paying $130 cash during the month. All is used in the month. 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 six full cases of soft drinks lef. Soles of items for the month was $5,200, there was a donation jar that had $1,560 which was deposited at month end in the bank. The cash advance will be returned on September 10th together with the total funds raised in the summer. To solve the problem assume the opening balance for the month is $3,640 for cash, $1,170 for Coffee, coffee cups and lids and $1,989.00 for retoined earnings. The opening balance of Beverages Inventory is zero. Required: 1. Prepare the statement of proof of cash by July 31st. 2. Prepare the Income Statement (accrual basis) for the Month of July. 3. Prepare the Balance Sheet (accrual basis) as of July 31st