Una Corp. was started in 2011. The following summarizes transactions that occurred during 2011 :
1. Issued a \(\$ 20,000\) face value discount note to Golden Savings Bank on April 1, 2011. The note had a 6 percent discount rate and a one-year term to maturity.
2. Recognized revenue from services performed for cash, \(\$ 125,000\).
3. Incurred and paid \(\$ 95,000\) cash for selling and administrative expenses.
4. Amortized the discount on the note at the end of the year, December 31, 2011.
5. Prepared the necessary closing entries at December \(31,2011\).
The following summarizes transactions that occurred in 2012:
1. Recognized \(\$ 195,000\) of service revenue in cash.
2. Incurred and paid \(\$ 146,000\) for selling and administrative expenses.
3. Amortized the remainder of the discount for 2012 and paid the face value of the note.
4. Prepared the necessary closing entries at December 31, 2012.
Required

a. Show the effects of each of the transactions on the elements of the financial statements, using a horizontal statements model like the one shown here. Use + for increase, - for decrease, and NA for not affected. The first transaction is entered as an example. (Closing entries do not affect the statements model.)

b. Prepare entries in general journal form for the transactions for 2011 and 2012, and post them to \(\mathrm{T}\)-accounts.

c. Prepare an income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for 2011 and 2012.

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Event No. Assets = Liab. + Equity Rev. - Exp. = Net Inc. Cash Flow 1 + + NA NA NA NA NA + FA