Reference no: EM132464976

point 1: On May 1, Joseph Carpenter opened a printing business, Carpenter Printing Incorporated. Joseph invested $40,000 of his savings in exchange for capital stock of the business.

point 2: On May 2, Carpenter Printing rented office space and paid $5,500 for the May office rent. Comprehensive insurance is included in the rental contract.

point 3: On May 5, Carpenter Printing rented printing equipment and paid $3,000 for the May equipment rent.

point 4: On May 7, Carpenter Printing purchased supplies on account for $4,500, $2,000 of which will be unused at the end of May.

point 5: On May 9, Carpenter Printing printed and delivered $6,000 of brochures for the Casalasco Company. Casalasco Company paid Carpenter Printing $1,000 upon delivery on May 9, and will pay the balance on June 9.

point 6: On May 20, Hillyer Advertising Agency paid Carpenter Printing $10,000 in advance to print advertisements by June 5. The advertisements will be printed on June 3.

Question 1: Assuming no further transactions, the Income Statement of Carpenter Printing Incorporated For the Month Ended May 31 shows ?

a.Net Loss of $5,000

b.Net Income of $5,000

c.Net Loss of $4,500

d.Net Income of $5,500