Pizza Express Incorporated began the Year $2$ accounting period with $$8,500$ cash; $$5,500$ of common stock; and $$3,000$ of retained earnings. Pizza Express was affected by the following accounting events during Year $2$:

Purchased $$12,000$ of supplies on account.

Earned and collected $$20,000$ of cash revenue.

Paid $$10,500$ cash on accounts payable.

Adjusted the records to reflect the use of supplies. A physical count indicated that $$2,400$ of supplies was still on hand on December $31,$ Year $2.$

Required:

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.