Chapter 3 HWG Saved 1 Exercise 3-3 Effect of inventory transactions on financial statements: Perpetual system LO Dan Watson started a small merchandising business in 2018. The business experienced the following events during its operation. Assume that Watson uses the perpetual inventory system. points 1 Acquired $32.500 cash from the issue of common stock 2 Purchased inventory for $26,000 cash. 3. Sold inventory costing $17100 for $29,000 cash eBook Required Hint a. Record the events in a horizontal statement modi investment activity, FA for financing activity, or NC for net change in cash. If the element is not affected by the event, blank b. Prepare an income statement for 2018 (use the multistep format). c. What is the amount of total assets at the end of the period? In the Cash Flow column, use OA to designate operating activity Print References Complete this question by entering your answers in the tabs below. Required A Required B Required C Record the events in a horizontal statement model. In the Cash Flow column, use OA to designate operating activity, IA for im activity, or NC for net change in cash. If the element is not affected by the event, leave the cell blank. (Not every cell will reg account balances and cash outflows with a minus siqn.) DAN WATSON MERCHANDISING Effect of Events on Financial Statement Stockholders' Equity Assets Net Statement of Cash Event Revenue Expenses Common Retained Earnings Income Flows Cash Inventory Stock 1 2. 3a. 3b. Mc Graw Hill Mc w Hill Pre er 3 HW Saved | Exercise 3-3 Effect of inventory transactions on financial statements: Perpetual system LO 3-1 Dan Watson started a small merchandising business in 2018. The business experienced the following events during its first year of operation. Assume that Watson uses the perpetual inventory system 1. Acquired $32,500 cash from the issue of common stock. 2. Purchased inventory for $26,000 cash. 3. Sold inventory costing $17100 for $29,000 cash. Book Required Hint a. Record the events in a horizontal statement model In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, or NC for net change in cash. If the element is not affected by the event, leave the cell blank. Print b. Prepare an income statement for 2018 (use the multistep format) c What is the amount of total assets at the end of the period? ferences Complete this question by entering your answers in the tabs below. Required C Required B Required A What is the amount of total assets at the end of the period? Total assets Required C