Problem 5-2 The following tran sact ions apply to Pugs Co. for 2018, its first year of operations. of common stock for cash. $300,000 $31,250 1 Issued to Horne Co. on September 1, 2018. The note had a one-year term to maturity 2 Loaned and an 3% interest rate. 3 Recorded the accrued interest income on December 31, 2018 (see item 2). $245,000 $92,500 6 Uncollectible accounts expense is estimated to be $192,500 $7,000 of services on account. of salaries expense for the year 4 Provided 5 Paid 1.0% of service revenue on account. 7 Collected cash from accounts receivable. 8 Paid a dividend to the stockholders. 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. a. b