Pizza Express Incorporated began the Year 2 accounting period with $9,000 cash; $6,000 of common stock; and $3,000 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 $24,000 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 $2,500 of supplies was still on hand on December 31, Year 2. Required: a. Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. More specifically, record the amounts of the events into the model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), Investing activities (IA), or financing activities (FA). The beginning balances are entered in the following example. Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed. PIZZA EXPRESS INCORPORATED Effect of Events on Financial Statements for Year 2 Check my wor Assets Liabilities Stockholders' Equity Income Statement Event Number Beginning balance Cash Supplies Accounts Payable Common Retained Statement of Cash Flows Revenue Stock Earnings Expense Not Income 9,000+ 6,000+ 3,000 1. 2 3. 4. Totals + 9,000+ 0 0+ The letters NC on the last line of the column designate the net change in cash 6,000 . = 3,000 0 0= 0 NC