John Lee opened a small haberdashery store on Luke Lane in Kingston on January 1, 2017. He started the business with Two Million Dollars ($2,000,000) in the bank and Four Hundred Thousand Dollars ($400,000) in cash and a building at $800,000. Lee also had a loan from BNS of One Hundred & Fifty Thousand ($150,000) and from his brother Phillip of One Hundred Thousand Dollars ($100,000.00).

During the month of January, Lee purchased the following items:

1. 45 sheet sets @ $3,000 each
2. 40 curtains @ $1,800 each
3. 60 entrance mats @ $900 each
4. 25 bed -side lamps @ $3,200 each
5. 20 standing fans @ $5,500 each
6. 35 clothes irons @ $1,800 each
7. 20 gas stoves @ $15,000 each
8. 40 frying pans @ 700 each
9. 30 pots @ 1,000 each
10. 30 dozen forks @ $375 per dozen

The items bought in January were on the following basis: Eighty five percent (85%) by cheque and ten percent (15%) for cash, except ten gas stoves which were bought on credit from Changs Trading Co. This amount was still outstanding at the end of January 2017. All items bought in January were sold by the end of January at a markup of 30%. The receipts from sales were as follows: 85% by cheque and 15% by cash and the monies lodged to the bank & cash accounts except 15 clothes irons which were sold on credit Lees cousin Bob. Bobs bill was still outstanding at the 31 January 2017.

During the month of January, Shuster paid for the following items:

1. Rent for $75,000
2. Salaries and wages for $80,000
3. Electricity for $35,500
4. Water for $16,000
5. Cleaning & sanitation for $15,500
6. Local travelling for $25,000
7. Telephone expenses for $20,000
8. Miscellaneous expenses for $8,500
9. Motor vehicle expenses for $28,000

The expenses for the month of January were paid for as follows: Ninety five percent (95%) by cheque and five percent (5%) by cash excluding the rent which was still outstanding at the end of January.

Required:

1. Prepare the opening balance sheet (as at January 1, 2017) for John Lee 5 marks
2. Prepare the sales & purchases account for the month of January 2017 10 marks
3. Prepare the Income statement for the month of January 2017 15 marks
4. Prepare the bank and cash a/cs for the month ending 31 January 2017 5 marks
5. Prepare the closing balance sheet (as at 31 January 2017) for J Lee 15 marks