Disney Inc. :

• Starting Balances as of January 1, 2024:
  • Cash: $40,000
  • Accounts Receivable: $25,000
  • Inventory: $60,000
  • Equipment: $120,000 (Accumulated Depreciation: $20,000)
  • Accounts Payable: $35,000
  • Capital: $190,000
• January 2024 Transactions:
  • Purchased inventory for $50,000 on account.
  • Paid $15,000 towards accounts payable.
  • Sold inventory for $80,000 (cost of goods sold: $50,000).
  • Collected $30,000 from accounts receivable.
  • Paid $25,000 in operating expenses.
  • Recorded depreciation expense of $3,000.

Requirements:

1. Journalize the transactions.
2. Post to the ledger accounts.
3. Prepare an adjusted trial balance.
4. Prepare the income statement and balance sheet as of January 31, 2024.