Business, 18.10.2019 01:10 hannahkelly1629

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 $32,500 cash from the issue of common stock. purchased inventory for $26,000 cash. sold inventory costing $15,500 for $32,000 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?

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The Journal entries, T-accounts, Income Statement, and Cash flow from Operating Activities are given below as explanation;

Explanation:

Requirement A) Journal Entries

1. Cash 32,500

Common Stock 32,500

2. Inventory 26,000

Cash 26,000

3. Cash 32,000

Sales Revenue 32,000

4. Cost of goods sold 15,500

Inventory 15,500

Requirement B) T-accounts

See attached image for this requirement. The Left side represents Debit and the right side represents Credit.

Requirement C) Income Statement

Dan Watson

Income Statement

For the year ended, Dec 31, 20X1

Particulars $

Sales 32,000

Less: Cost of goods sold (15,500)

Gross Margin (Profit) 16,500

Requirement D) Cash flow from operating activities

First, we have to find out, the net income.

Gross Margin 16,500

Less: Operating Expenses (0)

Net Income 16,500

Therefore, the cash flow from operating activities (O.A):

Net Income 16,500

Add:

Decrease in Inventory

(26,000 - 10,500) 15,500

Net Cash flow from O.A 32,000

Dan watson started a small merchandising business in year 1. the business experienced the following

Answer from: Quest

answer: d. characteristics of guests

explanation: it is directly related to the spending characteristics of attendees who fall into each of these categories:

Answer from: Quest

You need to give the options.

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