Tom loves cooking and after attending culinary school, he decided to start his own eatery in downtown Vancouver in May. Since he did not receive formal business, he has asked you to help him prepare monthly financial statements. He was able to collect all business receipts and financial records. The following are transactions for the month of January 2022, the first month of operations. Jan 1 Tom invested his saving of $350,000 into a business bank account at TD Bank and he also borrowed &150,000 as 24 months bank loan. Jan 1 Signed lease contract and secured the location Jan 1 Purchased a one-year insurance policy for $24,000 in cash. Jan 2 Tom purchased kitchen equipment for $150,000 and $1000 kitchen supplies including napkins and clean supplies in cash Jan 1 he hired a sous chef and one receptionist. In contract, he will pay the soul chef $5,000 per month and receptionist $3,000 per month Jan 2 Tom purchased $100,000 furniture in cash Jan 3 Tom hired a renovation company to do lease improvement. Jan 23 Tom completed his renovation and paid the renovation job $75,000 in cash Jan 24 Tom purchased $30,000 ingredients as weekly inventories Jan 24Tom had a grand open and generated $25,000 sales in cash and the cost of goods sold for the day was $5,000 Jan 25 Tom generated $15,000 sales in cash and the cost of goods sold for the day was $2,000 Jan 25 Tom launched a web campaign on Daily Hive, which cost him $5,000 and he needed to pay the bill in 5 days. Jan 26 Tom received weekend booking for a corporate social event and the client made prepaid $25,000 Jan 27 Over the end, Tom provided the service to his corporate client and the cost of goods sold was $10,000 Jan 28, Tom made the payment to invoice from Daily Hive Jan 29 Tom generated $10,000 sales and the cost of goods sold was $2,000 Jan 30th closed the business for day Jan 31 Tom paid his soul chef and receptionist monthly salaries. Jan 31 Tom also paid $3,000 dividend himself.

Requirements:

a. Calculate ending balance for each account.

b. Prepare income statement, statement of changes in equity and balance sheet.