Bennett Realty, a partnership commenced business on January 2, 2018. Please record the following transactions during the month of January utilizing T accounts. Then adjust the accounts to reflect the accrual basis. Finally, prepare an Income Statement and Statement of Owners Equity for the month ending 01/31/18, and a Balance Sheet as of 01/31/18. For this problem, do not consider depreciation.

1. Both partners contributed $250,000 each to the business.
2. The partnership purchased an apartment building for $1,250,000 (land is 20% & building is 80%). A bank gave the partnership 75% of the purchase price as a mortgage. The partnership provided the balance. (Assume no closing costs in this problem). The mortgage is 100% balloon with interest payable monthly at 9% per annum. The interest for the month of January was paid and booked on February 1, 2018.
3. The partnership paid telephone bills amounting to $1,400.
4. The partnership ordered and received office supplies costing $1,500 in January, but paid for them in the month of February. The supplies were used in the month of January.
5. The partnership billed rents to tenants for January, amounting to $40,000. They collected $37,000 in January and the balance in February.
6. The partners withdrew $2,000 each from the business for personal use.