Pizza Express Inc. began the Year 2 accounting perlod with $2,500 cash, $1,400 of common stock, and $1,100 of retalned earnings. Pizza Express was affected by the following accounting events during Year 2 1. Purchased $3.600 of supplies on account. 2 Earned and collected $12.300 of cash revenue. 3. Pald $2700 cash on accounts payable. 4. Adjusted the records to reflect the use of supples. A physlcal count Indicated that $250 of suppliles was still on hand on December 31, Year 2 Required a. Show the effects of the events on the financlal statements using a horizontal statements model glven 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.) PIZZA EXPRESS INC. Effect of Events on Financial Statements for Year 2 Assets Liabilities Stockholders Equity Income Statement Statement of Cash Flows Event Retained Earnings Accounts Common No. Revenue Expense Net Income %3D Cash Supplies Payable Stock 2,500 + 1,400 + 1.100 %3D Beg. bal. !! %3D %! 2. !! 3. %3D 4. Totals
Pizza Express Inc. began the Year 2 accounting perlod with $2,500 cash, $1,400 of common stock, and $1,100 of retalned earnings. Pizza Express was affected by the following accounting events during Year 2 1. Purchased $3.600 of supplies on account. 2 Earned and collected $12.300 of cash revenue. 3. Pald $2700 cash on accounts payable. 4. Adjusted the records to reflect the use of supples. A physlcal count Indicated that $250 of suppliles was still on hand on December 31, Year 2 Required a. Show the effects of the events on the financlal statements using a horizontal statements model glven 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.) PIZZA EXPRESS INC. Effect of Events on Financial Statements for Year 2 Assets Liabilities Stockholders Equity Income Statement Statement of Cash Flows Event Retained Earnings Accounts Common No. Revenue Expense Net Income %3D Cash Supplies Payable Stock 2,500 + 1,400 + 1.100 %3D Beg. bal. !! %3D %! 2. !! 3. %3D 4. Totals
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter1: Introduction To Accounting And Business
Section: Chapter Questions
Problem 3BE: Transactions Interstate Delivery Service is owned and operated by Katie Wyer. The following selected...
Related questions
Question
Could you please help me solving this question? Please
Transcribed Image Text:Pizza Express Inc. began the Year 2 accounting perlod with $2,500 cash, $1,400 of common stock, and $1,100 of retalned earnings.
Pizza Express was affected by the following accounting events during Year 2
1. Purchased $3.600 of supplies on account.
2 Earned and collected $12,300 of cash revenue.
3. Pald $2700 cash on accounts payable.
4. Adjusted the records to reflect the use of supplles. A physlcal count Indicated that $250 of supplles was still on hand on December
31, Year 2
Required
a. Show the effects of the events on the financlal statements usIng a horizontal statements model glven 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.)
PIZZA EXPRESS INC.
Effect of Events on Financial Statements for Year 2
Assets
= Liabilities +
Stockholders' Equity
Income Statement
Event
Statement of Cash
Common
+.
Retained
Earnings
Accounts
Flows
No.
Cash
Revenue
Expense
= Net Income
+
Supplies
!!
Payable
Stock
Beg. bal.
2,500 +
1,400 +
1,100
1.
%3D
2.
%3D
3.
%3D
%3D
4.
Totals
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 5 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781305084087
Author:
Cathy J. Scott
Publisher:
Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781305084087
Author:
Cathy J. Scott
Publisher:
Cengage Learning
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning