Pizza Express Inc began the Year 2 accounting period with $9,000 cash, $6,500 of common stock, and $2.500 of retained earnings Pizza Express was affected by the following accounting events during Year 2 1. Purchased $11,000 of supplies on account 2. Earned and collected $23,000 of cash revenue 3. Paid $9,500 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 Cash Flows column, use OA to designate operating activity, FA for financing activity, IA for investing activity, or NC for net change in cash If the element is not affected by the event, leave the cell blank. The beginning balances have been entered as an example (Enter any decreases to account balances and cash outflows with a minus sign. Not all cells will require entry) PIZZA EXPRESS IN Required a. Show the effects of the events on the financial statements using a horizontal statements model given below in the Cash Flows column, use OA to designate operating activity, FA for fipancing activity, IA for investing activity, or NC for net change in cash. If the element is not affected by the event, leave the cell blank The beginning balances have been entered as an example (Enter any decreases to account balances and cash outflows with a minus sign. Not all cells will require entry) Assets Event No Liabilities Accounts Payable PIZZA EXPRESS INC Effect of Events on Financial Statements for Year 2 Stockholders' Equity Income Statement Common Retained Revenue Expense Stock Net Income Earnings 6,500 2,500 Statement of Cash Flows Cash Supplies 0.000 Beg bal 1 2 . 4 Totals