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. a. Acquired $26,000 cash from the issue of common stock. b. Purchased inventory for $20,800 cash. c. Sold inventory costing $17,800 for $32,000 cash. Required: a. Record the events in a horizontal financial statements model. b. Prepare an income statement for Year 1 (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 financial statements model. Note: In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing account balances and cash outflows with a minus sign. Not all cells in the "Statement of Cash Flows" column may input needed. Balance Sheet DAN WATSON MERCHANDISING Eff

Cermulete mis suektine by saruring var anaws in the tuke beise onat nimies: 1. Acuured 526,000 cayh fiom the is sue of connon stack. cisold inventery cating 5 tites lor $32000 centi Apouled c. What it the amoure of sarw nusts at the pind of the serad? Comipltie this quetion ty entering yer anees in the take saber