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Pizza Express Inc. began the Year 2 accounting period with $9,500 cash, $8,000 of common stock, and $1,500 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 $27,000 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 $2,600 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. (Enter any decreases to account balances with a minus sign. Not all cells in the "Statement of Cash Flows" column may require an input - leave cells blank if there is no corresponding input needed.) PIZZA EXPRESS INC. Effect of Events on Financial Statements for Year 2 Balance Sheet Income Statement Liabilities Stockholders' Equity Revenue Expense Accounts Common Retained Payable Stock Earnings 8,000 1,500 Assets Net Income Event Statement of Cash Flows Cash + Supplies = + 9,500 = Beg. bal. 1. 2. 3. 4. Totals