Reference no: EM132466868

During January 2015, the first month of operations, a consulting firm had following transactions:

Point 1. Issued common stock to owners in exchange for $36,000 cash.

Point 2. Purchased $9,000 of equipment, paying $1,800 cash and signing a promissory note for $7,200.

Point 3. Received $16,200 in cash for consulting services performed in January.

Point 4. Purchased $2,700 of supplies on account; all of the supplies were used in January.

Point 5. Provided consulting services on account in the amount of $28,800.

Point 6. Paid $1,350 on account.

Point 7. Paid $5,400 to employees for work performed during January.

Point 8. Received a bill for utilities for January of $6,100; the bill remains unpaid..

Question 1: What is subtotal of expenses that will be reported on the income statement for the month ended January 31?