Johann Strauss had worked for more than 25 years as the executive assistant of top managers in large Canadian corporations. After retirement she decided to go on a trip around the world until she gets bored or drops dead. After 20 months in her Voyage' Johanna decided to return to Toronto due to a complicated health condition. After the initial treatment was completed Johanna needed to have regular check ups and not being confident in herself as before she decided to stay in Toronto all the time. Johanna has been always extremely active and in this new stage of her life she couldn't sitt. At this stage she was not interested in working for others as her health made her not very reliable, so she decided to start her own business with a passion she discovered in her Voyage': prepare and serve tea os it should be done. Her target market or audiences are selected meetings organized by top executives or their partners in their houses. On January 15 2016 Johanna or Lady Loaf as she wanted to be called set up a company to formalize the tea service she has been experiencing with her friends and acquaintances. A friend help her to prepare a business plan that was ready to be presented other friend's bank so she can get some extra financing if needed. In the meantime this friend was so sure about Johanna's idea that decided to lend her $10,000 for 5 years with an interest rate of 3% per year. On January 2nd Johanna sets up her company. Tea Experience with a capital of 10,000 shares valued at $5 each. A lawyer produced all the needed paperwork On January 3d Johanna opens a bank account under the name of Tea Experience Corp. depositing the $10,000 from her plus de $10,000 foaned by her friend. On January 4th Johanna transfers ownership of her sets of tea equipment to the company. All of her tea equipment is high end while one is very rare and exclusive. The equipment has a far market value of $7.500 and is estimated to last for 5 years and then, I not broken, can be sold for $1500. She also made sure to transfer the insurance contract for her tes equipment from her to the company as well, the contract started on October 18 2015. The insurance premum is $900 per year and it was paid in ful when signed on October 18 2015 On the same day Johanna sions in for the services of a ride sharing opp that would allow her to call a car to go and come back from the places of the customers that hire her The following is a lot of transactions that occurred during the first month of operations of 700 Experience Comp January 4th Completed the purchase of an exquisite wood bou fited to carry and mantain react the quality of a leaves for $3,000. The box which will be paid in tal on January 5th 2017 will be used during full years with no resale value at the end. January 5th Completed the purchase of an exquisite selection of tea leaves and matures for $2.000. % was paid in cash, the other 50% will be paid in 30 days. January 7th Great start of business serving several events for a large and well known international charity Got a cheque for $3,000 for her services and $2.000 in account to be collected on Jan 31 January 7th Poid $400 of transportation to me ride sharing service January 15* Hired a carpenter to improve the book of her exquiste wood bon this will not change the value of the useful life of the Boas. The work is completed and Johanna paid $300 on January 20th and promised to pay the rest (5700) on February 2017 January 20th Provided her services for two soll events, One promised to pay $500 of February 10th, while the other will pay the $500 by the end of February January 20th Provided services in an afternoon event at a local church. Johanno collected $200 for all her services, January 20th Poid $100 of transportation to the ride sharing service January 23td pad for a new professional outfit $BO (clothes) and a hair salon $40 that included labour, materials and tax. This was needed so she can be presentable at the higher event she will be providing services on January 25th January 23rd Ordered 300 personal cards and 100 brochures. Total paid for the rush order is $500 ($1 each personal card and $2 each brochure) Johanna will start attributing the the high end event of January 25th January 25 th One big event was serviced. The bill of $4,000 was poid som before the beginning of the event and the rest in 30 days. Johanna was able to distributo 100 personal ca and 20 brochures January 29th Received the bill from the lawyer that helped her to set up the company for $900 payable by February 15th. January 30th Received a deposit of $800 for servicing a mid afternoon get together on February 29th. The group wanted to reserve the date to do something special in her house a only happens once every 4 years January 3114 Having consumed 75% of the tes at hand she purchases on account more toa for $1000 Aditional information January 31 The online bank statement for the month of January shows bank tees of $25. January art the phone bill for $120 was received for the month of January, the payment is due on February 9th January 31 Jonanna does not collect $2.000 from a service provided on Jan 7th, January 31 Having cash at the bank decided to pay off all tea purchases Piepure "T" Accounts in ACCRUAL and CASH bous for this case using the following chart of accounts, when relevant, prepare the income statement, Statement of Retained Earnings an Balance Sheet and then answer the questions Revenue Depreciation Expense Insurance Expense Purchases Transportation Expense Organization Costs Prepaid insurance Advances from customers Interest Payable Phone payable Advertising Expense Expense on Equipment Interest Expense Selling Expenses Accumulated Depreciation Prepaid Advertising Tea equipment Equipment Payable Organization costs Payable Common Shares Bank fees CGS Phone Expense AR Cash Inventory Tea Equipment (Box) AP Loan Payable Retained Earnings What is the balance of the account Tea Equipment as reported in the Balance Sheet Statement at the end of January 31 (aftor AJE)? Note: Consider that Tea Equipment ace also the wooden box. Use occrual accounting Multiple Choice between $1 and 33.400 more than $10,400 O between $3,401 000 $7,00 50 between $7A01 and $10.400