Brief Exercise $2-5($Algo$)$ Supplies and the financial statements model LO $2-5$

Monroe Incorporated began the Year $2$ accounting period with $$6,800$ cash; $$3,400$ of common stock; and $$3,400$ of retained earnings. The company was affected by the following accounting events related to the purchase of supplies during Year $2$ :

Purchased $$1,080$ of supplies on account.

Adjusted the records to reflect the use of supplies. A physical count indicated that $$440$ of supplies was still on hand on December $31,$ Year $2.$

Required:

Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. More specifically, record the amounts of the events into the model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities $($OA$),$ investing activities $($IA$),$ or financing activities $($FA$).$ The beginning balances have been entered.

Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed.

Answer is complete but not entirely correct.

$\backslash$table$[[\backslash$table$[[$Event$],[$Number$]],$Balance Sheet,Income Statement,$\{$

$\backslash$table$[[$Statement of$],[$Cash Flows$]]\}],[$Assets$,\{$

$\backslash$table$[[=,$Liabilities$],[=,\backslash$table$[[$Accounts$],[$Payable$]]]]\},++,$Stockholders' Equity,Revenue,$-,$Expenses,$=,$ Neome $\_($ Net $)],[$Cash$,+,$Supplies,$\backslash$table$[[$Common$],[$Stock$]],+,\backslash$table$[[$Retained$],[$Earnings$]]],[\backslash$table$[[$Beginning$],[$Balance$]],6,800,+,,=,,+,3,400,+,3,400,,-,,=,,,],[1.,00,+,1,080,=,1,080,+,00,+,00,00,-,00,=,00,00,$OA x$],[2.,00,+,440\backslash$times $,=,00,+,00,+,3,400\backslash$times $,00,-,6400,=,640,00,$OA$,$x$],[$Total$,6,800,+,1,520,=,1,080,+,3,400,+,6,800,0,-,640,=,640,0,$NC$^(**)]]$