70.2K

Verified Solution

Link Copied!

Chec Pizza Express Inc. began the Year 2 accounting period with $9,000 cash, $7,000 of common stock, and $2,000 of retained earnings Pizza Express was affected by the following accounting events during Year 2: 1. Purchased $11,000 of supplies on account. 2. Earned and collected $21,000 of cash revenue. 3. Paid $9,500 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 eBook Hint Print References 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 and cash outflows with a minus sign. Not all cells require input.) PIZZA EXPRESS INC Effect of Events on Financial Statements for Year 2 Balance Sheet Income Statement Liabilities Stockholders' Equity Accounts Common Retained Revenue Expense - Net Income Payable Stock Earnings 2,000 Statement of Cash Flows Assets Event Cash Supplies 9.000 7.000 Begal 1 2 + + . 4 Minut

Answer & Explanation Solved by verified expert

See Answer