Below are select transactions for Lopez Island Ice Cream for the month of March. Assume the company records all adjusting entries at month-end. Calculate March net income.

Q15. March 1: The company prepaid its building insurance for March, April, and May for a total of $1,500 ($500 per month).

March 5: To raise capital, it sells new shares of stocks and becomes publicly owned. The company has decided on a $.05 par value and authorizes 1,000,000 shares, but only decides to sell 400,000 shares for $10 a share.

During March, the company had $28,000 sales that were made with cash and $4,000 sales that were made with customers redeeming gift cards. The cost of the inventory sold was $15,000.

During March, the company sold $5,000 of gift cards. These cards have not yet been redeemed.

March 31: Accrues $3,500 in wages for employees. Will pay this amount to employees in April.