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

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

Owner's Equity at May 1$0plus: Investment2,000plus: Net Income1,340less: Withdrawals0Owner's Equity at May 31$3,340

TOPS IN TOPIARY - BALANCE SHEET AS OF MAY 31

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

During June the following transactions occurred:

1) Paid the helper the $1,000 owed from works done in May (the amount owed is in Accounts Payable).

2) Completed the job for which the customer paid $200 in May. Tops in Topiary collected $2000 in cash once finished.

3) Paid $500 for the rent of July.

4) At the end of June notices that there are no supplies left. Makes a note to buy some in July.

5) At the end of June notices that there are few flyers left (used for advertising) worth $200 and decides to order some for July. Before ordering, the printer (supplier of flyers) asks to be paid $600 of the amount owed for the flyers done in May. Tops in Topiary pays $600.

6) In June collected in cash $3,000 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) In June 23rd Edward Scissorhands withdrew some cash for personal reasons ($2,000).

Prepare "T" Accounts in ACCRUAL 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 balance of Rent Expense?

$250

$0

$1,000

$500

None of the others alternatives are correct