Pizza Express Inc. began the Year 2 accounting period with $7,000 cash, $4,500 of common stock, and $2,500 of retained earnings. Pizza Express was affected by the following accounting events during Year 2: a. Purchased $10,500 of supplies on account. b. Earned and collected $21,000 of cash revenue. c. Paid $9,000 cash on accounts payable. d. Adjusted the records to reflect the use of supplies. A physical count indicated that $3,000 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, IA for investing activity, FA for financing activity, NC for net change in cash and NA to indicate accounts not affected by the event. The beginning balances have been recorded as an example. (Enter any decreases to account balances and cash outflows with a minus sign.) Assets Liabilities + PIZZA EXPRESS INC. Effect of Events on Financial Statements for Year 2 Stockholders' Equity Common Retained Revenue Stock Earnings 4,500 2,500 Income Statement Event Statement of Cash Flows Cash + Supplies Accounts Payable + + Expense Net Income Beg. Bal 7,000 + = + + NA 1. + + + + + + + + + 2. 3. 4. Totals + + + + + + + +