On April16,Joseph Carpenter formed a corporation,Carpenter Printing,to be operated as a printing business.On April18,Carpenter Printing issued shares of common stock in exchange for$31,056in cash;and$45,376in office furniture,printing equipment,computers,and design software.The furniture and equipment have an estimated residual value of$6,142, and an estimated useful life of8years.The furniture and printing equipment,with software installed,will be delivered on May2,and will be depreciated using the most common method.

On April20,Carpenter Printing signed a1year rental contract for office space,at a cost of$3,076per month,beginning May1.On April21,Carpenter Printing signed a1year insurance contract for a comprehensive insurance policy with coverage beginning May1.The cost of the insurance contract is$454.There a2options for making the insurance payment:half may be paid by May2and half plus a$13fee may be paid by July2;or the full amount may be paid by May2.On April22,after signing an agreement with its bank for Positive Pay,Carpenter Printing issued two checks.Check101paid the rent in advance for2months;Check102paid the full amount of the insurance payment.On April25,the bank notified Carpenter Printing that1check(s)had been presented for payment,but that no electronic file for a check run had been received.Carpenter Printing sent the confirming electronic file to the bank on April26.

On May5,Carpenter Printing's application for credit with a printing supplies vendor was approved and Carpenter Printing purchased supplies on account for$20,587.On May10,Carpenter Printing printed brochures in a massive advertising campaign for the new business,using$4,598of the supplies.

What is the effect of these transactions on theNetIncomeon the Income StatementonMay31?