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 $34,500 cash from the issue of common stock. 2. Purchased inventory for $27,600 cash. 3. Sold Inventory costing $18,000 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 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? 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 C 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 not 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 minus sign.) Show less DAN WATSON MERCHANDISING Effect of Events on Financial Statement Stockholders' Equity Common Retained Revenue Expenses = Stock Earnings Assets Net Statement of Cash Flows Event Income Cash + Inventory Required 3 > 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. points Required A Required B Required C eBook Prepare an Income statement for 2018 (use the multistep format). DAN WATSON MERCHANDISING Income Statement For the Year Ended December 31, 2018 Print References Operating expenses 1. Acquired $34,500 cash from the issue of common stock. 2. Purchased Inventory for $27,600 cash. 3. Sold Inventory costing $18,000 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 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 C What is the amount of total assets at the end of the period? Total assets (Required
