As well as your investments, you have decided to start a small business buying large boxes of wool and selling knitting kits on TradeMe.

Your business has started selling knitting kits for $30 each. The cost of the wool and the knitting needles in each kit totals $10. You include free shipping with each sale. The following transactions occurred during your first month of business:

1 May Invested $3,000 capital in the business.

2 May Purchased a computer for $1,000 on one-year interest-free credit.

3 May Purchased 10kg of wool online for $40 per kg and paid in cash.

5 May Purchased 100 knitting needles on credit for $200.

7 May Purchased a manually operated wool-winder to create smaller balls of wool for $400 cash.

10 May Paid a $300 advertising bill.

12 May Sold five knitting kits for $30 each. The cost of wool and needles for the kits was $10 each.

16 May Sold another twelve kits for $30 each. Contents cost $10 for each kit.

17 May Paid $50 courier charges in total for the 17 deliveries.

24 May Gave one knitting kit to your father, free of charge.

30 May Sold 20 knitting kits to a local shop on credit at a reduced price of $25 per kit.

Prepare an Income Statement for your business for the month ending 31 May 2021.