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Dan Watson started a small merchandising business in Yeart. The business experienced the following events during its first year of operation Assume that Watson uses the perpetual inventory system, 1. Acquired $31,500 cash from the issue of common stock. 2. Purchased inventory for $25,200 cash 3. Sold inventory costing $18,800 for $31,500 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 the first Journal entry worksheet Record entry for issuance of common stock. Note: Enter debits before credits. Event General Journal Debit Credit 1. + Record entry Clear entry View general Journal Required A Post the entries to T-accounts. Common Stock Cash Beg. Bal. Beg. Bat. End. Bal 18,800 End. Bal Sales Revenue Inventory Beg Bal Beg. Bal. End. Bal. End, Bal. Cost of Goods Sold Beg. 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

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