Pizza Express Incorporated began the Year 2 accounting period with $7,500 cash, $6,000 of common stock, and $1,500 of retained earnings. Pizza Express was affected by the following accounting events during Year 2:

1. Purchased $12,000 of supplies on account.
2. Earned and collected $30,000 of cash revenue.
3. Paid $10,500 cash on accounts payable.
4. 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 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.

Note: Enter any decreases to account balances and cash outflows with a minus sign. Not all cells require input