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 $28,000 cash from the issue of common stock. 2. Purchased Inventory for $22,400 cash. 3. Sold Inventory costing $17.600 for $30,000 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 8 Required C 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 Journal entry worksheet < A B C D Record entry for issuance of common stock. Note: Enter debits before credits. Event 1. Record entry General Journal Clear entry Debit Credit View general journal >

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 $28,000 cash from the issue of common stock.
2. Purchased Inventory for $22,400 cash.
3. Sold Inventory costing $17,600 for $30,000 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 C
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
Journal entry worksheet
<
A
B C D
Record entry for issuance of common stock.
Note: Enter debits before credits.
Event
1.
Required D
Record entry
General Journal
Clear entry
Debit
Credit
View general journal
>
Transcribed Image Text: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 $28,000 cash from the issue of common stock. 2. Purchased Inventory for $22,400 cash. 3. Sold Inventory costing $17,600 for $30,000 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 C 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 Journal entry worksheet < A B C D Record entry for issuance of common stock. Note: Enter debits before credits. Event 1. Required D Record entry General Journal Clear entry Debit Credit View general journal >
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