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 LIABILITYS AND OWNER'S EQUITY Current Assets: Current Liabilities: Cash $1 .380 Accounts Payable $ 300 Accounts Receivable $1 500 Advertising Payable $ 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 $4.340During June the following transactions occurred: 1) Completed a job for which the customer paid $500 in June. The invoice is for $1,000. 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 30' and then answer the questions. At the end of the accounting period (June 30)), T account after AJE), what is the Net Income?Multiple Choice O Less than $1,000 O More than $7,000 O Between $5,000 and $7,000 O Between $1,000 and $1,999 O Between $2,000 and $4,999