You are in your second year at McMaster and came back home for the summer. In past summers you have held several part-time jobs. In your spare time, you are a very active fundraiser for Paws Support and its international missions.

You had the fundraising idea of operating a booth to sell soft drinks, coffee, croissants, and other baked goods in the library park where all community events are held between May and August. They include all sorts of neighborhood parties that showcase local street art dealers, performers, local shops, and artists.

You approached Paws Support with the idea and a week later you got the approval to create the booth and were given a $1,930 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, a 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 (costs $410 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 $220 that will be returned on August 31st if the boot receives no ticket from the municipality inspectors).

You were elated because the Library will allow your booth to connect and use the Library utilities. Water, Drain, and Electricity connections use and dismantle after the event had a cost of $505 per month paid in cash on the last day of each month, the first payment on May 31st. This fee includes safe storage of the booth and equipment during weekdays.

The next stop was at Equipment Rental to rent display cases, a portable sink, a warming oven, a refrigerator, tables, two coffee markers, and a cash register for $315 per month. For the month of May add $220 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 (the 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 $600 and signage for the booth for $220 that is immediately expensed, paid for both with your MasterCard whose balance will be due on July 2nd. A total of $1,455 has been pre-order for coffee, coffee cups, lids, and stir Stix. Delivery is scheduled for May 10th, one third has been used in the month. Payments of 50% each are due on May 15th and July 15th.

At General Drinks you ordered on account a total of 85 cases of soft drinks per month, to be delivered on the first of each month, for $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 daily deliveries on Fridays, Saturdays, and Sundays for a total of 315 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 8 pm for free.

When needed you to go to the local supermarket to purchase Coffee Creamer, Sugar, and Milk, paying $125 cash during the same month. All are used in the month.

Every Friday morning you start setting everything up. You have been lucky to recruit 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 May were successful, everything was sold with only six full cases of soft drinks left. Sales of items for the month were $3,830, there was a donation jar that had $1,170 which was deposited at month's end in the bank. The cash advance will be returned on September 10th together with the total funds raised in the summer.

MANDATORY:

Prepare the Income Statement (accrual basis) for the Month of May (round up to 2 decimal places).

	Amount
Revenue
Donations
Expenses:
Booth Permit
Cleaning Deposit
Utilities
Equipment Rental
Equipment Rental Deposit
Tent
Depreciation Tent
Signage
Coffee, coffee cups, and lids
Beverages
Baked Goods
Coffee creamer, sugar, and milk
Total Expenses
Net Income