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Mark's on the Park (MOP) is a highly successful restaurant known for thelr weekend brunch. Given the success of the restaurant, one of Mark's friends
Mark's on the Park (MOP) is a highly successful restaurant known for thelr weekend brunch. Given the success of the restaurant, one of Mark's friends Mc Lowe asked for some financial help to open a similar restaurant in a nearby town. The following events relate to the loan from MOP to Mr. Lowe: 1. On March 1, Year 1, MOP loaned Mr Lowe $66,600 for one year at 5 percent interest 2 On December 31, Year 1, MOP recognized occrued interest on the loan. 3. On March 1, Year 2, MOP recogntzed accrued interest. 4. On March 1, Year 2, MOP recognized the collection of the note including all interest. Required: Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, ond statement of cash flows. More specifically, record the amounts of the events into the model. Note: In the Cash Flow column, use OA to designote operating ectivity, IA for Investment activity, FA for financing activity, and NC for net change in cash. Enter any decreases to occount balances and cash outtlows with o minus sign. Not all celis require an Input - leave cells blenk if there is no corresponding input needed
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