In 2021, founder and CEO. Sofia Martins commenced business as Martins \& Co., Inc., a rather exquisite line of expensive women's clothing. Since she took Fundamentals of Accounting, she knew that a good accounting team was necessary in order to be successful in her new venture. The first professional she hired was you to handle all her accounting functions. In order to prepare the company's Financial Statements for Martins \& Co, you will have to prepare the Horizontal Worksheet for the following transactions. 1) Martins \& Co., Inc. was started when it acquired $10,000 cash by issuing common stock. 2) The company borrowed $25,000 from The First Bank of Montclair. 3) Martins \& Co., Inc. provided services to its only customer, and received $52,000 cash. 4) The company paid operating expenses of $28,700. 5) Martins \& Co., Inc. paid the bank $12,500 to lower their loan. 6) The company paid $7,500 rent to Nieto Realtors. 7) Since they are an up and coming company, they threw a party for their employees and paid $10,000 cash. 8) Bought $8,000 of stock in Chesney's Coffee House, Inc., an up and coming coffeehouse chain, as an investment. 9) Paid cash for $3,000 in dividends to its stockholders. 10) According to the company's investment broker lan, Chesney's Coffee House, Inc. securities were worth $9,000 as of December 31,2021 a rather nice unrealized appreciation in the stock recently purchased.. Required: a) Record the above transactions on a horizontal statements model, reflecting their effect on the different financial statem. b) Prepare Martins \& Co. Inc.'s income statement, balance sheet and statement of cash flows for the year ended December 31, 2021 . Martins \& Co., Inc. Income Statement For the Year Ended December 31, 2021 Revenue Rent expense Operating expenses Net Income Martins \& Co., Horizontal Worksheet