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

1.Issued common stock to owners in exchange for $34,000 cash.

2.Purchased $8,500 of equipment, paying $2,550 cash and signing a promissory note for $5,950.

3.Received $15,300 in cash for consulting services performed in January.

4.Purchased $2,550 of supplies on account; all of the supplies were used in January.

5.Provided consulting services on account in the amount of $27,200.

6.Paid $1,275 on account.

7.Paid $5,100 to employees for work performed during January.

8.Received a bill for utilities for January of $5,800; the bill remains unpaid..

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

A.$7,650.

B.$13,450.

C.$6,375.

D.$14,725.