Milo Clothing experienced the following events during Year 1, its first year of operation:

1. Acquired $12,500 cash from the issue of common stock.
2. Purchased inventory for $5,200 cash.
3. Sold inventory costing $3,120 for $5,304 cash.
4. Paid $800 for advertising expense.

Required a. Record the general journal entries for the preceding transactions. b. Post each of the entries to T-accounts. c. Prepare a trial balance to prove the equality of debits and credits.