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?

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