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.

Acquired $$33,500$ cash from the issue of common stock.

Purchased inventory for $$26,800$ cash.

Sold inventory costing $$15,300$ for $$30,500$ cash.

Required:

Record the events in a horizontal financial statements model.

Prepare an income statement for Year $1($use the multistep format$).$

What is the amount of total assets at the end of the period?