Problem 5-2 25 points The following transactions apply to Amarillo Co. for 2018, its first year of operations. 1 Issued 2 Loaned $780,000 of common stock for cash. and an 5% interest rate. All monies will be collected on Aug 312019 3 Pecorded the accrued interest income on December 31, 2018 (see item 2). 4 Provided 5 Paid $637,000 of services on account. 6 . Uncollectlole accos $240,500 of salaries expense for the year. 7 Collected 8 Paid a 3.0% of service revenue on account. REQUIRED a. Show the effects of the above transactions in a horizontal statements modol. b. Prepare the income statement, balance shoet, and statement of cash flows for 2018. Make sure to include the interest impact on a separate line on the income statement for full credit