Exercise 2-12A (Static) Supplies and the financial statements model LO 2-5 Pizza Express Incorporated began the Year 2 accounting period with $2,500 cash, $1,400 of common stock, and $1,100 of retained earnings. Pizza Express was affected by the following accounting events during Year 2: 1. Purchased $3,600 of supplies on account. 2. Earned and collected $12,300 of cash revenue. 3. Paid $2,700 cash on accounts payable. 4. Adjusted the records to reflect the use of supplies. A physical count indicated that $250 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. In the Cash Flow column, use OA to designate operating activity, IA for investing activity, FA for financing activity, and NC for net change in cash. If the element is not affected by the event, leave the cell blank. The beginning balances are entered in the following example. (Enter any decreases to account balances and cash outflows with a minus sign. Not all cells require entry.) Event No. Beg., bal. 1. 2. Cash Assets + 2,500+ + + Supplies Balance Sheet Liabilities + Accounts Payable + + + + PIZZA EXPRESS, INCORPORATED Horizontal Statements Model Stockholders' Equity Common Stock + 1,400+ + + Retained Earnings 1,100 Revenue Income Statement Expense = Net Income = = Statement of Cash Flows

Exercise 2-12A (Static) Supplies and the financial statements model LO 2.5 Pizza Express Incorporated began the Year 2 accounting period with $2,500 cash, $1,400 of common stock, and $1,100 of retained earnings. Pizza Express was affected by the following accounting events during Year 2 : 1. Purchased $3,600 of supplies on account. 2. Earned and collected $12,300 of cash revenue. 3. Paid $2,700 cash on accounts payable. 4. Adjusted the records to reflect the use of supplies. A physical count indicated that $250 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. In the Cash Flow column, use OA to designate operating activity, IA for investing activity, FA for financing activity, and NC for net change in cash. If the element is not affected by the event, leave the cell blank. The beginning balances are entered in the following example. (Enter any decreases to account balances and cash outflows with a minus sign. Not all cells require entry.)