Pizza Express Incorporated began the Year $2$ accounting period with $$10,000$ cash, $$7,500$ of common stock, and $$2,500$ of retained

earnings. Pizza Express was affected by the following accounting events during Year $2$ :

Purchased $$10,000$ of supplies on account.

Earned and collected $$24,000$ of cash revenue.

Paid $$8,500$ cash on accounts payable.

Adjusted the records to reflect the use of supplies. A physical count indicated that $$2,900$ 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 fifjancing 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.

PIZZA EXPRESS INCORPORATED