Pizza Express Inc. 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 $12,500 of supplies on account. 2. Earned and collected $25,000 of cash revenue. 3. Pald $11,000 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 and cash outflows with a minus sign. Not all cells require input.) % Answer is not complete. PIZZA EXPRESS INC. . Effect of Events on Financial Statements for Year 2 Balance Sheet Income Statement Assets = + Event Liabilities Accounts Payable Stockholders' Equity Common Retained + + Stock Earnings Statement of Cash Flows Cash + Supplies + Revenue Expense = Net Income Beg. 8,500 - + 6.000 + 2,500 = bal. 1. - 12.500 = 12.500 + + = 2. 25,000 - = + 25,000 25,000 25,000 OA 25,000 (11.000) (11,000) + = ( (11,000+ + = OA 3. 4. - + + (10.000) = 2.500 (10,000) 17.500 10,000 10.000 (10,000) 15,000 Totals 22,500 + 1,500 + 8,000 + 25,000 = 14,000