Dan Watson started a small merchandising business in Year 1. The business experienced the following events during its first year of operation. Assume that Watson uses the perpetual inventory system.
1. Acquired $30,000 cash from the issue of common stock.
2. Purchased inventory for $18,000 cash.
3. Sold inventory costing $15,000 for $32,000 cash.

Required
a. Record the events in a horizontal financial statements model like the one shown next.

b. Determine the amount of gross margin.
c. What is the amount of total assets at the end of the period?

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Balance Sheet Income Statement Statement of Cash Flows Stk. Equlty Assets Com. Stk. Cash Inv. Ret. Earn. Exp. Net Inc. Rev.