Check my work 1 Exercise 3-3 Effect of inventory transactions on financial statements: Perpetual system LO 3-1 Dan Watson started a small merchandising business in 2018. The business experienced the following events during its first year of operation Assume that Wation uses the perpetual inventory system 5 1. Acquired 530.000 cash from the issue of common stock 2. Purchased inventory for $18.000 ch 3. Sold inventory costing $15.000 for $32.000 cash Required a. Record the events in a horizontal statement model in the Cash Flow column, use OA to designate operating activity for investment activity, FA for financing activity or NC for net change in cash the element is not affected by the event, leave the cell blank. b. Prepare an income statement for 2018 (use the multintop format c. What is the amount of total assets at the end of the period? PE Preces Complete this question by entering your answers in the tabs below. Regured Hegredo Requr Record the events in a hortzontal statement model in the cash flow column, use A to designate operating activity, IA for investment activity. A for trang activity, or NC for net change in cash. If the element is not affected by the event, wave the colbank. (Not everycol wit require entry. Enter cases to account balances and cash outhows with a mission) Show less DAN WATSON MERCHANDISINO Erect of Events Fanancial Statement Assets Stockholders' quity Net Dlatent of a Event Revenue EN ME Prey 1 of 2 !!! Next > Check my work 1 1 Complete this question by entering your answers in the tabs below. 5 Required A Required B Required Record the events in a horizontal statement model. In the Cash Flow column, se on 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 blank. Not every cell will require entry. Enter any decreases to account balances and cash outflows with a minut signs Show less 00 DAN WATSON MERCHANDISING Effect of events on Financial Statemente Stockholders' Equity Common Retained Revenue Stock Earnings Asset Cash nventory Event Net incon Statement of Cash Flows -- Herences 1 2 30 30 Total 1 > M Prev 1 of 2 !!! Next > Dan Watson started a small merchandising business in 2018. The business expune operation, Assume that Watson uses the perpetual Inventory system. 1. Acquired $30,00 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 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 blank b. Prepare an income statement for 2018 (use the multistep format). 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 Prepare an income statement for 2018 (use the multistep format). DAN WATSON MERCHANDISING Income Statement For the Year Ended December 31, 2018 Operating expenses Exercise 3-3 Effect of inventory transactions on financial statements: Perpetual system LO 3-1 Dan Watson started a small merchandising business in 2018. 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 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 blank b. Prepare an Income statement for 2018 (use the multistep format). 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 What is the amount of total assets at the end of the period? Total assets