Rainey Enterprises loaned $20,000 to Small Company on June 1, Year 1, for one year at...

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Rainey Enterprises loaned $20,000 to Small Company on June 1, Year 1, for one year at 6 percent interest. Required Show the effects of the following transactions in a horizontal statements model. In the Statement of Cash Flows column, indicate whether the item is an operating activity (OA), an investing activity (IA), or a financing activity (FA). For any element not affected by the event, leave the cell blank. Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed. (1) The loan to Small Company (2) The adjusting entry at December 31, Year 1. (3) The adjusting entry and collection of the note on June 1, Year 2. RAINEY ENTERPRISES Horizontal Statements Model Balance Sheet Assets Date Cash Notes Receivable Interest Receivable 1. 6/1/Y1 2. 12/31/Y1 3. 6/1/Y2 (Adjusting entry) 3. 6/1/Y2 (Collection of the note) + Income Statement Stockholders' Equity Liabilities + Revenue Expenses Net Income Statement of Cas Flows Retained Earnings + + + Rainey Enterprises loaned $20,000 to Small Company on June 1, Year 1, for one year at 6 percent interest. Required Show the effects of the following transactions in a horizontal statements model. In the Statement of Cash Flows column, indicate whether the item is an operating activity (OA), an investing activity (IA), or a financing activity (FA). For any element not affected by the event, leave the cell blank. Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed. (1) The loan to Small Company (2) The adjusting entry at December 31, Year 1. (3) The adjusting entry and collection of the note on June 1, Year 2. RAINEY ENTERPRISES Horizontal Statements Model Balance Sheet Assets Date Cash Notes Receivable Interest Receivable 1. 6/1/Y1 2. 12/31/Y1 3. 6/1/Y2 (Adjusting entry) 3. 6/1/Y2 (Collection of the note) + Income Statement Stockholders' Equity Liabilities + Revenue Expenses Net Income Statement of Cas Flows Retained Earnings + + +

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