Jerrys Janitorial Services Company has just completed its first year of operations. During the year, the following events took place.

• Customer payments in the amount of $1,280 were received at the time the cleaning services were performed.

• Another $700 of cleaning services were performed on account for customers; payments amounting to $120 have been received from those customers.

• On the last day of the year, a local company paid Jerry $60 for cleaning services to be performed in 30 days.

• Employee wages totaled $500 and were paid in cash.

• The cleaning supplies that were used to perform the cleaning services were paid for in cash and amounted to $520.

• The company rented equipment (vacuums, carpet machines, etc.) used in cleaning; at the end of the year the company owed $20 to the equipment rental company for equipment rented and used during the year.

• On the last day of the year, Jerry paid $240 in advance for rent on some office space.

Using accrual basis accounting, how much net income will Jerry report for the year?

a. $580

b. $700

c. $920

d. $940

e. none of the above