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 $34,000 cash from the issue of common stock. 2. Purchased inventory for $27,200 cash. 3. Sold inventory costing $18,800 for $29,000 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. (In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, and NC for net change in cash. Enter any decreases to account balances and cash outflows with a minus sign. Not all cells in the "Statement of Cash Flows colum require an input leave cells blank if there is no corresponding input needed.) Show omework Save & Exi ER STRAHLE Chec 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. (In the Cash Flow column, use DA to designate operating activity, 1A for investment activity, FA for financing activity, and NC for net change in cash. Enter any decreases to account balances and cash outflows with a minus sign. Not all cells in the "Statement of Cash Flows column may require an input- leave cells blank if there is no corresponding input needed.) Show less & DAN WATSON MERCHANDISING Effect of Events on Financial Statement Balance Sheet Income Statement Expenses Assets Stockholders' Equity Statement of Cash Flows Event Retained Reverse Earnings FA 1 OA D 2 OA 34 36 0 Total Cash 34,000+ + + 6,800+ (27,200) Inventory 0- 27,200 . 27.200 - Common Stock 34,000 0. 0. + 34,000+ 0 Net Income Required B > Help Browser=0&launchUrl=https%253A%252F%252Flms.mheducation.com%252Fmghmiddleware%252Fmhep Homework Saved 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 $34,000 cash from the issue of common stock. 2. Purchased inventory for $27,200 cash. 3. Sold inventory costing $18,800 for $29,000 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 Prepare an income statement for Year 1 (use the multistep format). DAN WATSON MERCHANDISING Income Statement For the Year Ended December 31, Year 1 Net sales Cost of goods sold 0 Gross margin 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 $34,000 cash from the issue of common stock. 2. Purchased inventory for $27,200 cash. 3. Sold inventory costing $18,800 for $29,000 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 What is the amount of total assets at the end of the period? Total assets
