Reference no: EM132835398

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

• Issued common stock to owners in exchange for $20,000 cash.
• Purchased $5,000 of equipment, paying $1,000 cash and signing a promissory note for $4,000. Received $9,000 in cash for consulting services performed in January.
• Purchased $1,500 of supplies on account; all of the supplies were used in January.
• Provided consulting services on account in the amount of $16,000.
• Paid $750 on account.
• Paid $3,000 to employees for work performed during January.
• Received a bill for utilities for January of $3,400; the bill remains unpaid.

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