ABC Corp had the following transactions during August 2023:

• August 2: Purchased inventory on account for $15,000.
• August 6: Sold goods costing $7,500 for $12,000 on account.
• August 10: Paid $1,200 for rent expenses.
• August 18: Collected $5,000 from customers on account.
• August 24: Paid suppliers $8,000.
• August 28: Declared and paid dividends of $2,000.

Requirements:

1. Journalize the transactions.
2. Post the journal entries to the general ledger.
3. Prepare a trial balance as of August 31, 2023.
4. Prepare an income statement for August 2023.
5. Explain the impact of rent expenses on the company's profitability.