ABC Corporation had the following transactions in August 2023:

• On August 3, the company purchased raw materials on credit for $6,000.
• On August 10, it paid $1,200 in cash for utilities.
• On August 18, it received $4,500 from customers for services rendered.
• On August 22, it paid $3,000 to suppliers on account.
• On August 29, it incurred $900 in wages expenses, which will be paid next month.

Requirements:

1. Record the journal entries for each transaction.
2. Prepare ledger accounts for Accounts Receivable, Accounts Payable, Cash, and Wages Payable.
3. Prepare a trial balance as of August 31, 2023.
4. Prepare an income statement for August 2023.
5. Explain the effect of each transaction on the accounting equation.