Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Pizza Express Incorporated began the Year 2 accounting period with $8,000 cash, $6,000 of common stock, and $2,000 of retained earnings. Pizza Express was affected

Pizza Express Incorporated began the Year 2 accounting period with $8,000 cash, $6,000 of common stock, and $2,000 of retained earnings. Pizza Express was affected by the following accounting events during Year 2: 1. Purchased $11,500 of supplies on account. 2. Earned and collected $28,000 of cash revenue. 3. Paid $10,000 cash on accounts payable. 4. Adjusted the records to reflect the use of supplies. A physical count indicated that $2,200 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. Note: Enter any decreases to account balances and cash outflows with a minus sign. Not all cells require input. Event Beginning balance 1. 2, 3. 4 Totals Cash Assets + 8,000 + + + + + Supplies PIZZA EXPRESS INCORPORATED Effect of Events on Financial Statements for Year 2 Balance Sheet Liabilities Accounts Payable + + + + + + Stockholders' Equity Common Stock 6,000 + + + Retained Earnings 2,000 Revenue Income Statement Expense = = = Net Income Statement of Cash Flows Che
image text in transcribed
please write out solution on paper for bettwr understanding
Pizza Express Incorporated began the Year 2 accounting period with $8,000 cash, $6,000 of common stock, and $2,000 of retained earnings. Pizza Express was affected by the following accounting events during Year 2 ; 1. Purchased $11,500 of supplies on account. 2. Earned and collected $28,000 of cash revenue. 3. Paid $10,000 cash on accounts payable. 4. Adjusted the records to reflect the use of supplies. A physical count indicated that $2,200 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 beiow. 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. Note: Enter any decreases to account balances and cash outflows with a minus sign. Not all cells require input

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Linking Auditing And Meta Evaluation Enhancing Quality In Applied Research

Authors: Thomas A. Schwandt, Edward S. Halpern

1st Edition

0803929684, 978-0803929685

More Books

Students also viewed these Accounting questions

Question

Explain how the four financial statements are related.

Answered: 1 week ago

Question

Solve problem m/3 - 4 = 2/3

Answered: 1 week ago

Question

Explain the factors that determine the degree of decentralisation

Answered: 1 week ago

Question

What Is acidity?

Answered: 1 week ago

Question

Explain the principles of delegation

Answered: 1 week ago

Question

State the importance of motivation

Answered: 1 week ago

Question

Discuss the various steps involved in the process of planning

Answered: 1 week ago