Exercise 4-2A (Algo) Effect of inventory transactions on journals, ledgers, and financial statements: Perpetual system LO 4-1 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 $30,000 cash from the issue of common stock. 2. Purchased inventory for $24,000 cash. 3. Sold inventory costing $15,900 for $29,500 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? Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Record the events in general journal format. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction fist View journal entry worksheet No A Event General Journal Cash Common stock Debit Credit 30.000 30.000 account field.) View transaction list View Journal entry worksheet No Event A 1. Cash Common stock General Journal Debit Credit 30,000 30,000 B 2 Inventory Cash C 3a. Cash Sales revenue D 3b Cost of goods sold Inventory Required A Required B > 24,000 24,000 29,500 29,500 15,900 15,900 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. Required A Required B Required C Required D Post the entries to T-accounts. Beg. Bal. int 1. Print 3a Cash 0 Beg Bal Common Stock 0 0 30,000 End. Bal End. Bal 30,000 ferences Inventory Sales Revenue Beg. Bal 2 Beg. Bat 0 0 29,500 3b. End: Bal 0 29,500 End. Bal Cost of Goods Sold Beg Bal 3a 15,900 End Bal 15,900 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? Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Determine the amount of gross margin. DAN WATSON MERCHANDISING Income Statement For the Year Ended December 31, Year 1 Cost of goods sold Gross margin 0 ences Perpetual system LO 4-1 Dan Watson started a small merchandising business in Year 1. The business experienced the following events during operation. Assume that Watson uses the perpetual inventory system. 1. Acquired $30,000 cash from the issue of common stock. 2. Purchased inventory for $24,000 cash. 3. Sold inventory costing $15,900 for $29,500 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? Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D What is the amount of net cash flow from operating activities for Year 1? (Indicate cash outflows with minus sign.) Net cash flow from operating activities $ 13.600