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Exercise 4-2A Effect of inventory transactions on journals, ledgers, and financial statements: Perpetual system LO 4-1 Dan Watson started a small merchandising business in Year

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Exercise 4-2A 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 $15,600 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 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 list iew transaction list Journal entry worksheet 1 2 2 3 3 4 > Record entry for issuance of common stock. Note: Enter debits before credits. Event General Journal Debit Credit 01 Record entry Clear entry View general journal Teo Required B > Journal entry worksheet > N Record sale of inventory for cash. Note: Enter debits before credits. Event General Journal Debit Credit 3a Record entry Clear entry View general journal Requind A Required B View transaction list Journal entry worksheet 1 2 2 3 Record entry for cost of goods sold. Note: Enter debits before credits. Event General Journal Debit Credit 3b Record entry Clear entry View general journal Required Required > Required A Required B Required Required D Post the entries to T-accounts. Cash Common Stock Beg. Bal. Beg. Bal. End. Bal. End, Bal. Merchandise Inventory Sales Revenue Beg. Bal Beg. Bal End. Bal. +0 End. Bal Cost of Goods Sold Bog. Bal End, Bal 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 0 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 minu Net cash flow from operating activities

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