Exercise $3-3$A $($Algo$)$ Effect of inventory transactions on financial statements: Perpetual system LO $3-1$

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.

Acquired $$26,500$ cash from the issue of common stock.

Purchased inventory for $$21,200$ cash.

Sold inventory costing $$16,700$ for $$30,500$ cash.

Required

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.

b$.$ Prepare an income statement for Year $1($use the multistep format$).$

c$.$ What is the amount of total assets at the end of the period?

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 fi

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 require entry. Enter any decre

account balances and cash outflows with a minus sign.$)$

I keep getting part C wrong but I have the table filled out. Help please