LMN Enterprises had the following transactions in October 2023:

• October 5: Paid $2,000 for insurance coverage for the next 12 months.
• October 12: Purchased equipment for $5,000 on account.
• October 18: Sold goods costing $3,000 for $6,500 on account.
• October 24: Paid $1,200 for utilities.
• October 29: Collected $4,000 from customers on account.

Requirements:

1. Journalize the transactions.
2. Post the journal entries to the general ledger.
3. Prepare a trial balance as of October 31, 2023.
4. Prepare an income statement for October 2023.
5. Analyze the impact of prepaid insurance on the financial statements.