Disney Inc. 

• Starting Balances as of November 1, 2025:
  • Cash: $40,000
  • Accounts Receivable: $30,000
  • Inventory: $100,000
  • Equipment: $110,000 (Accumulated Depreciation: $25,000)
  • Accounts Payable: $70,000
  • Capital: $185,000
• November 2025 Transactions:
  • Purchased inventory for $80,000 on account.
  • Paid $35,000 towards accounts payable.
  • Sold inventory for $130,000 (cost of goods sold: $85,000).
  • Collected $55,000 from accounts receivable.
  • Paid $40,000 in operating expenses.
  • Recorded depreciation expense of $4,000.

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 November 30, 2025.