Disney Inc. :

• Starting Balances as of July 1, 2024:
  • Cash: $30,000
  • Accounts Receivable: $20,000
  • Inventory: $70,000
  • Equipment: $90,000 (Accumulated Depreciation: $15,000)
  • Accounts Payable: $30,000
  • Capital: $165,000
• July 2024 Transactions:
  • Purchased inventory for $45,000 on account.
  • Paid $20,000 towards accounts payable.
  • Sold inventory for $100,000 (cost of goods sold: $60,000).
  • Collected $35,000 from accounts receivable.
  • Paid $25,000 in operating expenses.
  • Recorded depreciation expense of $2,500.

Requirements:

1. Prepare journal entries for the above transactions.
2. Post the entries to the general ledger.
3. Prepare an adjusted trial balance.
4. Create an income statement and a balance sheet for Disney Inc. as of July 31, 2024.