'ainey Enterprises loaned $40,000 to Small Company on June 1, Year 1, for one year at 8 percent interest. yequired how the effects of the following transactions in a horizontal statements model. In the Statement of Cash Flows column, indicate thether the item is an operating activity (OA), an investing activity (A), or a financing activity (FA). lote: 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