Kevin Morris started a small merchandising business in 2011. The business experienced the following events during its first year of operation. Assume that Morris uses the perpetual inventory system.

1. Acquired \(\$ 60,000\) cash from the issue of common stock.

2. Purchased inventory for \(\$ 50,000\) cash.

3. Sold inventory costing \(\$ 36,000\) for \(\$ 56,000\) cash.

Required

a. Record the events in general journal format.

b. Post the entries to T-accounts.

c. Prepare an income statement for 2011 (use the multistep format).

d. What is the amount of total assets at the end of the period?