Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Help Save & Exit Su Check my wo Required a. Show the effects of the events on the financial statements using a horizontal statements model
Help Save & Exit Su Check my wo 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 EXPRESS INC. Effect of Events on Financial Statements for Year 2 Balance Sheet Income Statement Liabilities Stockholders' Equity Revenue - Expense Net Income Accounts Common Retained Poble Stock Earnings 6.000 + 2500 Assets - Event Statement of Cash Flows Cash - Supplies - Beg ba 8.500 4 0 0 PI Expressing, began the Year 2 accounting period with $8,500 cash, $6,000 of common stock, and $2,500 of retained earnings. Pizza Express was affected by the following accounting events during Year 2: 1. Purchased $11,500 of supplies on account. 2. Earned and collected $26,000 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 $2.500 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 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 EXPRESS INC. Effect of Events on Financial Statements for Year 2 Balance Sheet Income Statement Liabilities - Stockholders' Equity Revenue - Expense - Net Income Accounts Common Retained Payable Stock Earnings - Event Statement of Cash flows Cash Supplies
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started