Pizza Express Inc. began the Year 2 accounting period with $8,000 cash, $5,500 of common stock, and $2,500 of retained earnings Pizza Express was affected by the following accounting events during Year 2: 1. Purchased $10,000 of supplies on account. 2. Earned and collected $26,000 of cash revenue. 3. Paid $8,500 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 net change in cash. The beginning balances have been recorded as an example. (Enter any decreases to account balances and cash outflows with a minus sign. Not all cells require input.) PIZZA EXPRESS INC. Effect of Events on Financial Statements for Year 2 Balance Sheet Event Assets Liabilities Accounts Stockholders' Equity Cash Supplies Payable Common Stock Retained Revenue Earnings Beg bal 8,000+ 5,500+ 2,500 1 2 + + + Income Statement Statement of Cash Flows Expense Net Income 3. + 4. Totals 8,000+ 0 = 0+ 5,500+ 2,500 0 0