Pizza Express Incorporated began the Year 2 accounting period with $8,000 cash, $5,500 of common stock, and $2,500 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 $2,000 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. In the Statement of Cash Flows column, use OA to designate operating activity, FA for financing activity, IA for investing activity, and NC for net change in cash. If the element is not affected by the event, leave the cell blank. The beginning balances have been entered as an example. (Enter any decreases to account balances and cash outflows with a minus sign. Not all cells require entry.) PIZZA EXPRESS INCORPORATED Horizontal Statements Model Stockholders' Equity Balance Sheet Event No. Assets Liabilities + Cash Supplies Accounts Payable Common Stock Beg. bal. 8,000+ 1. 2. 4 3. + + 5,500+ + + + 4 Totals 8,000+ 0- 0 5,500 Income Statement Statement of Cash Flows Retained Revenue Earnings Expense Net Income 2,500 OA OA 2.500 0 0 ONC < Prev 4 of 6 Next >