Smiles Entertainment Had the Following Accounts and Balances at December

Smiles Entertainment had the following accounts and balances at December 31: $$\begin{array} { | l | r | r | } \hline \text { Account } & \text { Debit } & \text { Credit } \\\hline \text { Cash } & \$ 10,000 & \\\hline \text { Acoounts Receivable } & 2,000 & \\\hline \text { Prepaid Insurance } & 2,400 & \\\hline \text { Supplies } & 1,000 & \\\hline \text { Acoounts Payable } & & \$ 5,000 \\\hline \text { Common Stock } & & 4,900 \\\hline \text { Service Revenue } & & 7,000 \\\hline \text { Salaries Expense } &500 & \\\hline \text { Utilities Expense } & 1,000\\\hline \text { Totals } & \$ 16,900 & \$ 16,900 \\\hline\end{array}$$ Using the information in the table, calculate the company's reported net income for the period.

A) $1,100.
B) $4,000.
C) $4,500.
D) $10,400.
E) $5,500.