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.) Assets PIZZA EXPRESS INC. Effect of Events on Financial Statements for Year 2 Balance Sheet Income Statement Liabilities + Stockholders' Equity Accounts Common Retained Stock Revenue Payable - Net Income Expense Earnings 1,400 + + Staten Event Cash Supplies 2,500+ 1.100 Beg. bal. 1. + + 2 + 3 4. Totale 1 of 7 BE Prev Next > PIZZA EXPRESS INC. Effect of Events on Financial Statements for Year 2 Balance Sheet Income Statement Liabilities Stockholders' Equity Accounts Common Retained Revenue Expense Payable Stock Earnings + 1,400 1.100 Event Assets Statement Flow Cash Supplies Net Income 9. bal. 2,500 + + 1. 2. 3 + + 4. otals