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Lady Leaf and her "Tea experience" business
The following is a list of transactions that occurred during the first month of operations of "Tea Experience Corp":
Additional information
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.
Problem 1: What is the amount of Insurance Expense at the end of January 31 (after AJE)? Use cash accounting.
A: between $1 and $501
B: $0
C: more than $1,000
D: between $501 and $750
E: between $751 and $1,000
Problem 2: What is the amount of Organization Costs at the end of January 31 (after AJE)? Use accrual accounting.
A: between $101 and $800
B: more than $1,000
C: between $801 and $1,000
D: between $1 and $100
E: $0
Correcting errors in a trial balance The following trial balance of Josh Maddy Tutoring Service at May 31, 2016, does not balance.
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