Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Answer in table form, like the question. Pizza Express Inc. began the 2018 accounting period with $7,500 cash, $6,000 of common stock, and $1,500 of

Answer in table form, like the question.

image text in transcribed

image text in transcribed

Pizza Express Inc. began the 2018 accounting period with $7,500 cash, $6,000 of common stock, and $1,500 of retained earnings. Pizza Express was affected by the following accounting events during 2018: 1. Purchased $11,000 of supplies on account. 2. Earned and collected $22,000 of cash revenue. 3. Paid $9,500 cash on accounts payable 4. Adjusted the records to reflect the use of supplies. A physical count indicated that $2,000 of supplies was still on hand on December 31, 2018. Required a. Show the effects of the events on the financial statements using a horizontal statements model given below. In the Cash Flows column, use OA to designate operating activity, IA for investing activity, FA for financing activity, NC for net change in cash and NA to indicate accounts not affected by the event. The beginning balances have been recorded as an example. (Enter any decreases to account balances and cash outflows with a minus sign.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions