Lady Leaf and her Tea experience business Sep 30 PDF

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Cas e#3:LadyLeafandher" T eaex per i enc e"bus i nes s J ohannaSt r aus shadwor k edf ormor et han25y ear sast heex ec ut i veass i st antoft opmanager si nl ar geCanadi an c or por at i ons .Af t err et i r ements hedeci dedt ogoonat r i par oundt hewor l dunt i l s heget sbor edordr opsdead. Af t er20mont hsi nher' vo y age' Johannadeci dedt or et ur nt oTor ont oduet oacompl i c at edheal t hcondi t i on.Af t er t hei ni t i alt r eat mentwascompl et edJohannaneededt ohaver egul arc heckupsandnotbei ngconfidenti nher s el f asbef or eshedec i dedt os t ayi nTor ont oal l t het i me .Johannahasbeenal way sex t r emel yact i veandi nt hi snew s t ageofherl i f es hecoul dn' tsi tst i l l .Att hi ss t ages hewasnoti nt er es t edi nwor k i ngf orot her sasherheal t hmade hernotver yr el i abl e,sos hedeci dedt os t ar therownbus i nesswi t hapas s i ons hedi sc ov er edi nher' v o yage' : pr epar eandser v et eaasi tshoul dbedone.Hert ar getmar k etoraudi enc esar es el ect edmeet i ngsor gani z edby t opex ec ut i vesort hei rpar t ner si nt hei rhouses . OnJ anuar y1st2016JohannaorLadyLeafass hewant edt obec al l eds etupac ompanyt of or mal i z et het ea s er v i c es hehasbeenex per i enc i ngwi t hherf r i endsandac quai nt ances .Af r i endhel phert opr epar eabusi ness pl ant hatwasr eadyt obepr esent edatherf r i end' sbanksos hecangets omeex t r afinanc i ngi fneeded,i nt he meant i met hi sf r i endwass os ur eaboutJ ohanna' si deat hatdeci dedt ol endher$10, 000f or5y ear swi t han i nt er es tr at eof3% pery ear .OnJ anuar y2ndJohannas et suphercompany:TeaExper i encewi t hac api t al of 10, 000shar esv al uedat$5eac h.Al awy erpr oducedal l t heneededpaper wor k . OnJ anuar y3r dJohannaopensabankac countundert henameofTeaEx per i enc eCor p.depos i t i ngt he$10, 000 f r om herpl ust he$10, 000l oanedbyherf r i end.OnJanuar y4t hJohannat r ans f er sowner s hi pofhers et soft ea equi pmentt ot hec ompany .Al l ofhert eaequi pmenti shi ghendwhi l eonei sv er yr ar eandex cl usi v e.The equi pmenthasaf ai rmar k etv al ueof$7, 500andi ses t i mat edt ol as tf or5y ear sandt hen,i fnotbr ok en,c anbe s ol df or$1, 500.Sheal s omades ur et ot r ans f ert hei ns ur ancec ont r ac tf orhert eaequi pmentf r om hert ot he c ompanyaswel l ,t hecont r acts t ar t edonOc t ober1s t2015.Thei nsur ancepr emi um i s$900pery earandi twas pai di nf ul l whens i gnedonOct ober1st2015.Ont hesamedayJ ohannasi gnsi nf ort hes er vi c esofar i des har i ng appt hatwoul dal l owhert oc al lac art ogoandc omebackf r om t hepl ac esoft hecus t omer st hathi r eher . DepEx p=( 75001500) / 5=$1200 SoMont hl yDep=1200/ 12=$100 Mont hl yI nsur anc eex p=900/ 12=$75 J an3Cas hDr20, 000 LoanPay abl eCr10, 000 CommonShar eCr10, 000 ( Loan$10, 0005Yr s@3% &Commons har es10, 000@$5,2000i s suedandpai dup) J an4T eaEqptDr7500 Pr epai di ns ur anceDr CommonShar eCr8175 ( J ohannaCapi t al7500+900* 9/ 12=8175) Thef ol l owi ngi sal i s toft r ans act i onst hatoccur r eddur i ngt hefi r stmont hofoper at i onsof" TeaEx per i enceCor p" : J anuar y4t hCompl et edt hepur c has eofanex qui s i t ewoodboxfi t t edt ocar r yandmai nt ai ni nt actt hequal i t yoft ea l eav esf or$3, 000.Thebox ,whi c hwi l l bepai di nf ul l onJanuar y5t h2017,wi l lbeus eddur i ng5f ul ly ear swi t hno r esal eval ueatt heend. J an4T eaEqui pment( Bo x)Dr3000 Ac c ountPay abl eCr3000 ( APonJ an5,2017) DeponTeaBox=3000/ 5=600 Mont hl yDep=600/ 12=$50 J anuar y5t hCompl et edt hepur c has eofanex qui s i t es el ec t i onoft eal eavesandmi xt ur esf or$2, 000.50% was pai di ncas h,t heot her50% wi l l bepai di n30day s . J an5Pur c has esDr2000 Cas hCr1000 Ac c ountPay abl eCr1000

J anuar y7t hGr eats t ar tofbusi nesss er vi ngsev er al ev ent sf oral ar geandwel l knowni nt er nat i onalc har i t y .Gota c hequef or$3, 000f orhers er v i cesand$2, 000i nac countt obecol l ect edonJ an31st . J an7Cas hDr3000 Ac countRecei v abl eDr2000 Rev enueCr5000 J anuar y7t hPai d$400oft r anspor t at i ont ot her i des har i ngs er v i ce. J an7T r ans por t at i onEx pens eDr400 Cas hCr400 J anuar y15t hHi r edacar pent ert oi mpr ovet hel ookofherex qui si t ewoodbox( t hi swi l l notc hanget hev al ueort he usef ul l i f eoft hebox ) .Thewor ki sc ompl et edandJ ohannapai d$300onJ anuar y20t handpr omi sedt opayt he r est( $700)onFebr uar y20t h. J an15Expens eonEqui pmentDr1000 Cas hCr300 Equi pmentPa y abl eCr700 J anuar y20t hPr ov i dedhers er vi c esf ort wosmal l ev ent s.Onepr omi s edt opay$500ofFebr uar y10t h,whi l et he ot herwi l l payt he$500byt heendofFebr uar y . J an20Acc ountRec ei v abl eDr$1000 Rev enueCr1000 J anuar y20t hPr ov i dedser v i cesi nanaf t er noonev entatal ocal c hur ch.J ohannac ol l ect ed$200f oral l her s er v i c es . J an20Cash200 Rev enueCr200 J anuar y20t hPai d$100oft r ans por t at i ont ot her i des har i ngser v i ce. J an20Tr ans por t at i onEx pens eDr100 Cas hCr100 J anuar y23r dPai df oranewpr of ess i onalout fi t$80( c l ot hes )andahai rsal on$40t hati nc l udedl abour ,mat er i al s andt ax .Thi swasneededs os hecanbepr esent abl eatt hehi ghendevents hewi l l bepr ov i di ngser v i ceson J anuar y25t h. J an23Or gani z at i onCos t sDr120 Cas hCr120 J anuar y23r dOr der ed300per s onal car dsand100br oc hur es .Tot al pai df ort her us hor deri s$500( $1eac h per s onal car dand$2eac hbr oc hur e) .J ohannawi l l s t ar tdi s t r i but i ngt hem att hehi ghendev entofJanuar y25t h. J an23Pr epai dAdv er t i si ngDr500 Cas hCr500 J anuar y25t hOnebi gev entwasser v i ced.Thebi l l of$4, 000waspai d50% bef or et hebegi nni ngoft heev entand t her es ti n30day s .Johannawasabl et odi st r i but e100per s onal car dsand20br oc hur es . J an25CashDr2000 Acc ountRec ei v abl eDr2000 Rev enueCr4000

J an25Adv er t i s i ngEx penseDr140 Pr epai dAdver t i s i ngCr140 ( 100Car ds @$1+20Br ochur es @$2)

J anuar y29t hRecei v edt hebi l l f r om t hel awy ert hathel pedhert os etupt hec ompanyf or$900pay abl eby Febr uar y15t h. J an29Or gani zat i onCos t sDr900 Or gani zat i onCos t sPa y abl eCr900 J anuar y30t hRecei v edadepos i tof$800f ors er v i c i ngami daf t er noongett oget heronFebr uar y29t h.Thegr oup want edt or es er v et hedat et odosomet hi ngspec i al i nherhouseasi tonl yhappensonc eev er y4y ear s . J an30CashDr800 Adv anc esf r om c ust omer sCr800 J anuar y31s tHavi ngcons umed75% oft het eaathands hepur chasesonaccountmor et eaf or$1, 000. T eaPur c has ed onJ an5f or$2000.75% c onsumed. SoCGS=75%* 2000=1500 SoBal anc e$500 J an31Pur chasesDr1000 Ac c ountPay abl eCr1000 Addi t i onal i nf or ma t i on J anuar y31s tTheonl i nebanks t at ementf ort hemont hofJ anuar ys howsbankf eesof$25. J an31BankFeeDr25 Cas hCr25 J anuar y31s tThephonebi l l f or$120wasr ecei v edf ort hemont hofJanuar y ,t hepaymenti sdueonFebr uar y9t h. J an31PhoneEx penseDr120 Phonepay abl eCr120 J anuar y31s tJohannadoesnotc ol l ect$2, 000f r om as er vi c epr ov i dedonJ an7t h. NoEnt r yt i l lcl osur eofFY. J anuar y31s tHavi ngcashatt hebankdec i dedt opayoffal lt eapur chases. J an31Acc ountPay abl eDr2000 Cas hCr2000 J an31Depr ec i at i onExp–TeaSetDr100 Depr ec i at i onExp–Bo xDr75 Ac c umul at edDepr ec i at i onCr175 J an31I nsur ancee xpDr Pr epai dI ns ur anceCr Pr epar e" T"Account si nACCRUALandCASHbas i sf ort hi scas eusi ngt hef ol l owi ngc har tofac c ount s ,when r el ev ant ,pr epar et heI ncomes t at ement ,St at ementofRet ai nedEar ni ngsandBal anceSheet...