Reference no: EM132505821

Katelyn's Catering, Inc. ("Katelyn") provides gourmet appetizers for corporate functions. For the month of January 2020, Katelyn had the following events occur in its business:

1) Katelyn incurred and paid salaries for their wait staff and chefs of $10,000;

2) Katelyn paid their food supplier $18,000 for food supplies used in the prior month;

3) Katelyn incurred but did not pay $800 in utilities;

4) Katelyn incurred $1,200 of repairs expenses on the delivery van, but will not pay until next month;

5) Katelyn was paid $12,000 from her largest corporate customer for a holiday party they catered in the prior month.

Question 1: What are the total amount of expenses that Katelyn will show on their income statement for the month of January 2020?

Option A. $0

Option B. $12,000

Option C. $18,000

Option D. $30,000