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 $30,500 cash from the issue of common stock. 2. Purchased inventory for $24,400 cash. 3. Sold inventory costing $18,700 for $32,000 cash. Required a. Record the events in general journal format. b. Post the entries to T-accounts. c. Determine the amount of gross margin. d. What is the amount of net cash flow from operating activities for Year 1? Journal entry worksheet 1 2 3 4 Record entry for issuance of common stock. Note: Enter debits before credits. Event General Journal Debit Credit 01 Journal entry worksheet 1 3 4 Record the entry of inventory purchased for cash. Note: Enter debits before credits. Event General Journal Debit Credit 2. Record entry Clear entry View general journal Journal entry worksheet Record entry for cost of goods sold. Note: Enter debits before credits. Event General Journal Debit Credit 3b