January 20xx Transactions

On Jan 1, Salim Patel started the Patel Engineering Design Corporation. The following transactions are for his first month of operations:

Jan. 1 Salim received a family loan of $30,000 which he deposited into the engineering design Corporation account at ScotiaBank. The loan is expected to be paid back in 2 years. He also deposited $20,000 of his own funds into the same account and in return, the Corporation issued Common shares to him.

Jan. 2 He went out and bought design software for $10,000, paying $4,000 cash and the remainder to on account/credit

Jan 3 Salim got a design contract for January for $11,000. He received $2,000 cash with the rest to be paid in February

Jan. 5 He paid $800 for marketing costs on account.

Jan. 8 He needed office supplies, so he paid $400 for office supplies.

Jan. 11 He obtained another design contract for January for $5,000 and received $3,000 cash with the rest to be paid on completion later in the month on account.

Jan. 15 Salim paid rent for the month in the amount of $1,000 Jan. 16 Salim got tired of taking the TTC and bought and paid in full for a used car for $8,000. He also paid $2,400 for insurance

Jan. 25 He paid in full the balance due from the Jan 2 transaction

Jan. 30 Salim paid $4,000 in salaries

Jan. 30 He received a bill for gas for the month in the amount of $1,000

Jan. 30 He received a $5,000 payment from customers who were billed in the January 3 transaction an $2,000 from customers billed in the Jan. 11

Required:

Prepare the Balance Sheet and an Income Statement for January 31, 20XX