Ryan Cast started a business, Golf Clubs Inc, buying and re-selling used golf clubs. The...
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Ryan Cast started a business, Golf Clubs Inc, buying and re-selling used golf clubs. The business started in May and during its first month of business had the following transactions:
- Issued 2,000 shares of stock at $40 per share
- Bought 3,000 golf clubs at $6 per golf club
- Sold 800 golf clubs on credit for $10 per golf club
- Sold 700 golf clubs for $10 per golf club
- Purchased equipment for $12,000 cash. This equipment is estimated to last for 24 months.
- Purchased $1,000 advertising for May. Golf Clubs Inc will pay for the advertising in June.
- Golf Clubs Inc declared and paid a $700 dividend to its shareholders.
What is the net income (net loss) for Golf Clubs Inc for the month of May?
| A | $3,800 |
| B | $4,500 |
| C | ($4,500) |
| D | $5,500 |
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