Pizza Express Incorporated began the Year 2 accounting period with $10,000 cash, $7,500 of common stock,...

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Pizza Express Incorporated began the Year 2 accounting period with $10,000 cash, $7,500 of common stock, and $2.500 of retained earnings. Pizza Express was affected by the following accounting events during Year 2: 1. Purchased $12,500 of supplies on account. 2. Earned and collected $23,000 of cash revenue. 3. Paid $11,000 cash on accounts payable. 4. Adjusted the records to reflect the use of supplies. A physical count indicated that $2,200 of supplies was still on hand on December 31, Year 2. Required: a. Show the effects of the events on the financial statements using a horizontal statements model given below. In the Statement of Cash Flows column, use OA to designate operating activity, IA for investing activity, FA for financing activity, and NC for not change in cash. The beginning balances have been recorded as an example. Note: Enter any decreases to account balances and cash outflows with a minus sign. Not all cells require input. Event Beginning balance 1, 2 3 4 Totals Cash Assets 10,000+ 10,000 Supplies 0 PIZZA EXPRESS INCORPORATED Effect of Events on Financial Statements for Year 2 Balance Sheet Liabilities Accounts Payable Stockholders' Equity Retained Earnings Common Stock 7,500. 7,500 2,500 2,500 Revenue Income Statement Expense 0 = Net Income 0 Statement of Cash Flows 0 Pizza Express Incorporated began the Year 2 accounting period with $10,000 cash, $7,500 of common stock, and $2.500 of retained earnings. Pizza Express was affected by the following accounting events during Year 2: 1. Purchased $12,500 of supplies on account. 2. Earned and collected $23,000 of cash revenue. 3. Paid $11,000 cash on accounts payable. 4. Adjusted the records to reflect the use of supplies. A physical count indicated that $2,200 of supplies was still on hand on December 31, Year 2. Required: a. Show the effects of the events on the financial statements using a horizontal statements model given below. In the Statement of Cash Flows column, use OA to designate operating activity, IA for investing activity, FA for financing activity, and NC for not change in cash. The beginning balances have been recorded as an example. Note: Enter any decreases to account balances and cash outflows with a minus sign. Not all cells require input. Event Beginning balance 1, 2 3 4 Totals Cash Assets 10,000+ 10,000 Supplies 0 PIZZA EXPRESS INCORPORATED Effect of Events on Financial Statements for Year 2 Balance Sheet Liabilities Accounts Payable Stockholders' Equity Retained Earnings Common Stock 7,500. 7,500 2,500 2,500 Revenue Income Statement Expense 0 = Net Income 0 Statement of Cash Flows 0

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