Chapter 3 HW Seved Help Save & Exit Submit 2 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 $28,000 cash from the issue of common stock. 16.66 points Skipped eBook Print References 2. Purchased inventory for $22,400 cash. 3. Sold inventory costing $17,100 for $28,500 cash. Required a. Record the events in a horizontal statement model. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, or NC for net change in cash. If the element is not affected by the event, leave the cell b. Prepare an income statement for Year 1 (use the multistep format). blank. c. What is the amount of total assets at the end of the period? Complete this question by entering your answers in the tabs below. Required A Required B Required C Record the events in a horizontal statement model. In the Cash Flow column, use OA to designate operating activity, IA for investment act activity, or NC for net change in cash. If the element is not affected by the event, leave the cell blank. (Not every cell will require entry. Er account balances and cash outflows with a minus sign.) DAN WATSON MERCHANDISING zto.mheducation.com/ext/map/index.html? 3 HW Saved Complete this question by entering your answers in the tabs below.. Required A Required B Required C Help Sat Record the events in a horizontal statement model. In the Cash Flow column, use OA to designate operating activity, IA for i activity, or NC for net change in cash. If the element is not affected by the event, leave the cell blank. (Not every cell will re account balances and cash outflows with a minus sign.) DAN WATSON MERCHANDISING Effect of Events on Financial Statements Assets Stockholders' Equity Event Common Retained Revenue Expenses Net Income Statement of Cash Flows Cash Inventory Stock Earnings 1. 2. 3a. B 4 36. Total 0+ 0= 0 0 0 < Prev 2 of 6 Next > FS ^ & 6 7 * A F10 BHW Saved Complete this question by entering your answers in the tabs b Required A Required B Required C Prepare an income statement for Year 1 (use the multistep format). DAN WATSON MERCHANDISING Income Statement For the Year Ended December 31, Year 1 0 < Required A Operating expenses $ 0 E < Prev 2 of 6 22 BD FS 000 GOD F4 * SA % 5 56 e 2 c. What is the amount of total assets at the end of the pe Complete this question by entering your answers in Required A Required B Required C What is the amount of total assets at the end of the period Total assets L 72 He #3 0 F3 54 54 < Nquired B 55 % < Prev