5.

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

1.	Issued common stock to owners in exchange for $32,000 cash.
2.	Purchased $8,000 of equipment, paying $1,600 cash and signing a promissory note for $6,400.
3.	Received $14,400 in cash for consulting services performed in January.
4.	Purchased $2,400 of supplies on account; all of the supplies were used in January.
5.	Provided consulting services on account in the amount of $25,600.
6.	Paid $1,200 on account.
7.	Paid $4,800 to employees for work performed during January.
8.	Received a bill for utilities for January of $5,450; the bill remains unpaid..

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

A) $6,000.

B) $12,650.

C) $7,200.

D) $13,050.