Accounting for ABC Retail Store Project

Suppose you’re working as an accountant in a small retail business called ABC Retail Store. The financial transactions that took place during the first month of operations were as follows:

1. ABC Retail Store invests \$10,000 cash to start the business.
2. Purchased inventory on credit from a supplier for \$2,500
3. Sold inventory costing \$1,000 for cash, receiving \$1,200
4. Paid $800 for rent expenses
5. Purchased office supplies for \$300 cash
6. Received \$500 cash as a down payment from a customer for an upcoming order
7. Paid \$600 cash for salary expenses
8. Sold products for \$700 on credit
9. Paid \$200 cash for utility expenses
10. Withdrew \$300 cash for personal use

You must perform the following tasks:

Task 1: Book the transactions in the respective T-accounts using the correct debit/credit entries.

Task 2: Create ABC Store’s Trial Balance for the first month of operations.

Task 3: Create ABC Store’s Balance Sheet and Income Statement for the same period