Saved Help Save & Exit Submit 5 Pizza Express Inc. began the Year 2 accounting period with $7,500 cash, $5,000 of common stock, and $2,500 of retained earnings. Pizza Express was affected by the following accounting events during Year 2: 1. Purchased $10,000 of supplies on account 2. Earned and collected $25,000 of cash revenue. 3. Paid $8,500 cash on accounts payable. 4. Adjusted the records to reflect the use of supplies. A physical count indicated that $2,300 of supplies was still on hand on December 31, Year 2 pints eBook Required Print References a. Show the effects of the events on the financial statements using a horizontal statements model given below. In the Cash Flows column, use OA to designate operating activity, FA for financing activity, IA for investing activity, or 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 will require entry) Event No Liabilities Accounts Payable Assets Cash Supplies 7.500 PIZZA EXPRESS INC Effect of Events on Financial Statements for Year 2 Stockholders' Equity Income Statement Common Retained Stock Revenue Earnings Expense Net Income 5,000+ 2,500 Staten Beg bal 1 + 2 + Mc Graw Hill Required a. Show the effects of the events on the financial statements using a horizontal statements model given below. In the Cash Flows column, use OA to designate operating activity, FA for financing activity, IA for investing activity, or 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 will require entry.) Assets Liabilities Accounts Payable PIZZA EXPRESS INC Effect of Events on Financial Statements for Year 2 + Stockholders' Equity Income Statement Common Retained Revenue - Net Income Stock Earnings Expense 5,000 2,500 Event No Staten Cash + Supplies 7.500 Bog, bal 1 + - 2. 3 Totals 5 vents on the financial statements using a horizontal statements model given below. In the Cash designate operating activity, FA for financing activity, IA for investing activity, or NC for net change not affected by the event, leave the cell blank. The beginning balances have been entered as an eases to account balances and cash outflows with a minus sign. Not all cells will require entry.) ts Book PIZZA EXPRESS INC Effect of Events on Financial Statements for Year 2 Liabilities + Stockholders' Equity Income Statement Accounts Common Retained Revenue Stock Payable Expense - Not Income Earnings 5,000+ 2.500 Print Statement of Cash Flows pplies References +
