Exercise 4-2A (Algo) Effect of inventory transactions on journals, ledgers, and financial statements: Perpetual system LO 41 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 $31,000 cash. Required 0. 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? Complete this question by entering your answers in the tabs below. Record the events in general journal format. (if no entry is required for a transaction/event, seloct "No journat entry required in the first. account field.) Journal entry worksheet Record entry for issuance of common stock. Woten Enter debit before aredite