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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 $30.000 cash from the Issue of common stock. 2 Purchased Inventory for $18,000 cash. 3. Sold Inventory costing $15,000 for $32,000 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 perlod? 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 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. (Not every cell will require entry. Enter any decreases to account balances and cash outflows with a minus sign.) DAN WWAT SON MERCHANDISING Effect of Events on Financial Statements Stockholders Equity Retained Earnings Statement of Cash Flows Assets Net Revenue - Expenses = Event Common Income Cash + Inventory Stock 1. 2. 3a. %3D 3b. %3D Total Required B > +++++

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 $30.000 cash from the Issue of common stock. 2 Purchased Inventory for $18,000 cash. 3. Sold Inventory costing $15,000 for $32,000 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 perlod? 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 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. (Not every cell will require entry. Enter any decreases to account balances and cash outflows with a minus sign.) DAN WWAT SON MERCHANDISING Effect of Events on Financial Statements Stockholders Equity Retained Earnings Statement of Cash Flows Assets Net Revenue - Expenses = Event Common Income Cash + Inventory Stock 1. 2. 3a. %3D 3b. %3D Total Required B > +++++

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Dan Watson started a small merchandising business In Year 1. The business experfenced the following events during Its first year of operation. AsSume that Watson uses the perpetual Inventory system. 1. Acquired $30,000 cash from the Issue of common stock. 2 Purchased Inventory for $18,000 cash. 3. Sold Inventory costing $15.000 for $32,000 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 perlod? Complete this question by entering your answers in the tabs below. Required A Required B Required C Record the events in a horizonțal 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. (Not every cell will require entry. Enter any decreases to account balances and cash outflows with a minus sign.) DAN WAT SON MERCHANDISING Effect of Events on Financial Statements Stockholders Equity Retained Earnings Statement of Cash Flows Assets Net Revenue - Expenses = Event Common Income Cash + Inventory Stock 1. %3D 2. 3a 36, %3D Total Required B >
Transcribed Image Text:Dan Watson started a small merchandising business In Year 1. The business experfenced the following events during Its first year of operation. AsSume that Watson uses the perpetual Inventory system. 1. Acquired $30,000 cash from the Issue of common stock. 2 Purchased Inventory for $18,000 cash. 3. Sold Inventory costing $15.000 for $32,000 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 perlod? Complete this question by entering your answers in the tabs below. Required A Required B Required C Record the events in a horizonțal 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. (Not every cell will require entry. Enter any decreases to account balances and cash outflows with a minus sign.) DAN WAT SON MERCHANDISING Effect of Events on Financial Statements Stockholders Equity Retained Earnings Statement of Cash Flows Assets Net Revenue - Expenses = Event Common Income Cash + Inventory Stock 1. %3D 2. 3a 36, %3D Total Required B >
Dan Watson started a small merchandising business In Year 1. The business experfenced the following events during Its first year of operation. Assume that Watson uses the perpetual Inventory system. 1 Acquired $30,000 cash from the Issue of common stock. 2 Purchased Inventory for $18,000 cash. 3. Sold Inventory costing $15.000 for $32,000 cash. Required a. Record the events In a horlzontal 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 perlod? Complete this question by entering your answers in the tabs below. Required A Required B Required C Prepare an income statement for Year 1 (use the multistep format). DAN WAT SON MERCHANDI SING Income Statement For the Year Ended December 31, Year 1 Operating expenses < Required A Required C >
Transcribed Image Text:Dan Watson started a small merchandising business In Year 1. The business experfenced the following events during Its first year of operation. Assume that Watson uses the perpetual Inventory system. 1 Acquired $30,000 cash from the Issue of common stock. 2 Purchased Inventory for $18,000 cash. 3. Sold Inventory costing $15.000 for $32,000 cash. Required a. Record the events In a horlzontal 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 perlod? Complete this question by entering your answers in the tabs below. Required A Required B Required C Prepare an income statement for Year 1 (use the multistep format). DAN WAT SON MERCHANDI SING Income Statement For the Year Ended December 31, Year 1 Operating expenses < Required A Required C >
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