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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
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