Pizza Express Inc. 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 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.) + Event Statement of Cash Flows + + + Beg. bal. PIZZA EXPRESS INC. Effect of Events on Financial Statements for Year 2 Balance Sheet Income Statement Assets = Liabilities Stockholders' Equity Accounts Common Retained Cash Supplies Revenue Payable Stock Earnings = Net Income Expense 2,500 + 1,400 + 1,100 = + 3,600/= 3,600+ 12,300 + = 12,300 12,300 0 = 12,300 (2,700)| + = (2,700) + + (3,350) = + (3,350) (3,350) = (3,350) 12,100 + 250 = 900 + 1,400 + 10,050 12,300 (3,350) = 8,950 + 1. + + - OA 2. + + (3,600) 12,300 (2,700) OA 3. = 4. + + NC Totals 6,000