The following financial statements were prepared at the end of the month of May:

TOPS IN TOPIARY - INCOME STATEMENT FOR the month of May

Revenue $2,540 Expenses: Rent Expense $500 Advertising Expense $500 Wages Expense $200 $1,200 Net Income $1,340

TOPS IN TOPIARY - STATEMENT OF OWNER'S EQUITY FOR the month of MAY

Owner's Equity at May 1 $0 plus: Investment 2,000 plus: Net Income 1,340 less: Withdrawals 0 Owner's Equity at May 31 $3,340

TOPS IN TOPIARY - BALANCE SHEET AS OF MAY 31

ASSETS LIABILITES AND OWNER'S EQUITY Current Assets: Current Liabilities: Cash $1,380 Accounts Payable $300 Accounts Receivable $1,500 Advertising Payable $500 Prepaid Rent $ 500 Advances from Customers $200 Prepaid Advertising $ 500 Supplies $ 100 $3,980 Equipment $ 360 Owner's Equity $3,340 Total Assets $4,340 Total Liabilities & OE $4,340

During June the following transactions occurred:

1) Completed a job for which the customer paid $500 in June. The invoice is for $1000.

2) Hire a helper and paid $1,000 for works done.

3) Paid $500 for the rent of July.

4) Purchased supplies for $500. At the end of June notices that there are $500 of supplies left.

5) Orders new flyers for advertising. They will be ready in July but the printer asked to be paid in advance $100.

6) In June collected in cash $1,000 for 3 jobs are done for a total of $4,500, the rest is owed in account by the customers.

7) In June decided to start depreciating the equipment bought for $360 that is expected to last for 3 years.

8) Received an advancement of $2,000 from a customer for a job to be done in August.

9) Asked for a 5 years loan in the local bank for $4,000 and got it in June 7th.

10) with the money of the loan purchased equipment for $4,200 It is expected that the equipment will last 5 years.

Prepare "T" Accounts in CASH Basis for the period ended on June 30th and then answer the questions.

At the end of the accounting period (June 30th, T account after AJE), what is the Net Income?

Between $5,000 and $7,000

More than $7,000

Less than $1,000

Between $1,000 and $1,999

Between $2,000 and $4,999