Rainey Enterprises loaned $$25,000$ 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$).$

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 $2.$