Question: Ahmad started a new business on Jan 1, 2016 by depositing $1,000,000 cash in the bank as capital. The following transactions took place during the first month of operations:

3 Purchased supplies for $7,500 in cash.

Purchased equipment for $85,000, paid $35,000 in cash and the remaining amount will be paid after 10 days.

Paid $8,000 salaries in cash.

Received a bill from Daily News for advertising amounted to $550.

Ahmad withdrew $2,500 cash for personal use.

Provided services to customers for $65,000 in cash.

Paid $50,000 for equipment purchased on Jan 10.

Paid utilities expense $ 2,000 in cash.

Required: Prepare financial statements on January 31, 2016.