Exercise 3-1A Supplies and the financial statements model LO 3-1 Pizza Express Inc began the Year 2 accounting period with $7,000 cash, $5,000 of common stock, and $2,000 of retained earings Pizza Express was affected by the following accounting events during Year 2 1 Purchased $11,500 of supplies on account 2. Earned and collected $22.000 of cash revenue 3. Paid $10,000 cash on accounts payable 4. Adjusted the records to reflect the use of supplies. A physical count indicated that $2,100 of supplies was still on hand on December 31, Year 2 SOR 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 net change in cash. The beginning balances have been recorded as an example (Enter any decreases to account balances with a minus sign. Not all cells in the Statement of Cash Flows" column may require an input leave cells blank If there is no corresponding Input needed.) PIZZA EXPRESSING Effect of events on Financial Statements for Year 2 Balance Sheet Income Statement Llabilities Stockholders' Equity Revenue Expenses Accounts Common Retained Payable Stock Earnings 5,000 2.000 Event Assets Net Income Statement of Cash Flow Supplies Cach 7,000+ Bogbal 1 2 3