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 ber 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 sit stil. 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 as it should be done. Her target market or audiences are selected meetings organized by top executves or their partners in their houses On January 2016 Johanna or Lady Leaf as she wanted to be called set up a company to formalze the top service she has been experiencing wenner friends and acquaintances. A friend help her to prepare a business plan that was ready to be presented at her friend's bank so she can get some extra financing if needed in the meantime this friend was so sure about Johanne's idea that decided to bend het $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 3rd Johanna opens a bank account under the name of Tea Experience Corp.deposting the $10,000 from her plus the $10.000 loaned by her friend. On January 4th Johanna transfers ownership of her sets of tea equipment to the company. Al of her be equipment is high end while one is very rare and exclusive. The equipment hos for market value of $7,500 and is estimated to last for 5 years and then, it not broken, can be sold for $1500. She also made sure to transfer the insurance contract for her tea equipment from her to the company as well, the contract started on October *** 2015. The insurance premium is $900 per year and it was paid in ful when signed on October 18 2015. On the same day Sahara sions in for the services of a ride sharing app that would low her to call a car to go and come back from the places of the customers that hire her The following is a set of transactions that occurred during the first month of operations of *To Experience Corp", January 4 Completed me purchase of an exquiste wood box fitted to carry and maintain intact the quality of to leaves for $3,000 The box which wil be paid in a on January 2017, will be used during 5 years with no resale value at the end January shcompeted the purchase of an exquisite selection of tea leaves and matures for $2.000. 1ox was paid in east, the other so wit be paid in 30 days. January 7th crom start of business serving several events for a large and well known insational charly Got a chave for $2.000 for her services and $2,000 in account to be collected on Jan 31 January 7th Pald 5400 of operation to the leshorng service January 15 red carpenter to improve the look of her expone wood box this wat not change the vole or the sense te of the bow The work is comoweo and Johanna peid $100 on January 20h and promised to pay the rest (S700) February 2011 January 20h Provided her services for two small events. One promised to pay $500 of February 10, while the other will pay the $500 by the end of February January 20th Provided services in an afternoon event at a local church, Johanna collected $200 for all her services January 20th Pald $100 of transportation to the ride sharing service January 23rd paid for a new professional outfit sao (clothes) and a hair salon $40 that included labour, materials and tax. This was needed so she can be presentable at the high end 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 (S1 each personal card and $2 each brochure) Johanna wil stort distributing them at the high end event of January 25th January 25th One big event was serviced. The bill of $4,000 was paid 50% before the beginning of the event and the rest in 30 days. Johanna was able to distribute 100 personal cards 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 as it only happens once every 4 years January 31st Having consumed 75% of the tea at hand she purchases on account more tea for $1000 Additional information January 319 The online bank statement for the month of January shows bank fees of $25 January 31 The phone bill for $120 was received for the month of January, the payment is due on February 9th January 31 Johanna 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. Prepare "T" Accounts in ACCRUAL and CASH basis for this case using the following chart of accounts, when relevant prepare the income statement, Statement of Retained Earnings and 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 amount of Phone Expense at the end of January 31 (after AJE)? Use accrual accounting. Multiple Choice between $51 and $100 $0 between $1 and $50 more than $150 between $101 and $150