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 supplies. A physical 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 Event No. Statement of Cash Flows Accounts Common Retained Cash Supplies Revenue Expense = Net Income Payable Stock Earnings Beg. bal. 2,500 + 1,400 + 1,100 1. 3,600 3,800 + 12,300 + (2.700) + 2. 12,300 12,300 OA (2.700) (2.700)
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 supplies. A physical 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 Event No. Statement of Cash Flows Accounts Common Retained Cash Supplies Revenue Expense = Net Income Payable Stock Earnings Beg. bal. 2,500 + 1,400 + 1,100 1. 3,600 3,800 + 12,300 + (2.700) + 2. 12,300 12,300 OA (2.700) (2.700)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Can anyone please help me solving this question. I am missing something in it
Transcribed Image Text:vork (LOs 5-9)
Seved
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 supplies. A physical 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 horlzontal 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
Flows
Accounts
Common
Stock
Retained
Earnings
No.
Cash
Supplies
Revenue
Expense
= Net Income
Payable
Beg. bal.
2,500 +
1,400 +
1,100
1.
3,600
3,800 +
2.
12.300 +
12,300
12,300
OA
3.
(2,700) +
(2,700)
(2,700)
OA
(3,350) =
250 =
(3,350)
3,350 =
3,350 =
4
Totals
12.100 +
900
1.400 +
10,050
9,600
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