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. red $30.500 cash $24.400 cash 500 cash. 1. Acquired $30,500 cash from the issue of common stock. 2. Purchased Inventory for $24.400 cash. 3. Sold Inventory costing $16,300 for $30,500 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 at Journal entry worksheet Record entry for issuance of common stock Note: Enter debits before credits Event General Journal Debit Credit Record entry Clear entry View general Journal Required Required B > Required A Required B Required Required D Post the entries to T-accounts. Cash Common Stock Bea Bal Beg Bal End Bal End. Bal. Merchandise Inventory Sales Revenue Beg Bal. Beg Bal End Bal End Bal Cost of Goods Sold Beg Bal. End. Bal Required A Required B Required 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