Exercise $5-11$A $($Algo$)$ Accounting for notes receivable LO $5-4$

Rainey Enterprises loaned $$35,000$ to Small Company on June $1,$ Year $1,$ for one year at $5$ 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$).$

Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed.

$(1)$ The Ioan 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 $2.$

Answer is not complete.