Problem 5-2 25 points The following transactions apply to Ferraro Co. for 2018, its first year of operations. 1 Issued $180,000 of common stock for cash. 2 Loaned $18,750 to CA Co. on September 1, 2018. The note had a one-year term to maturity and an 5% interest rate. All monies will be collected on Aug 31 2019 3 Recorded the accrued interest income on December 31, 2018 (see item 2). 4. Provided $147,000 of services on account. 5 Paid $55,500 of salaries expense for the year. 6 Uncollectible accounts expense is estimated to be 1.0% of service revenue on account. 7 Collected $115,500 cash from accounts receivable. 8 Paid a $4,200 dividend to the stockholders. a. b. REQUIRED Show the effects of the above transactions in a horizontal statements model. Prepare the income statement, balance sheet, and statement of cash flows for 2018