Rainey Enterprises loaned $$35,000$ to Small Co$.$ on June $1,$ Year $1,$ for one year at $5$ percent interest.

Required

Show the effects of the following transactions in a horizontal statements. In the Cash Flow column, indicate whether the item is an

operating activity $($OA$),$ an investing activity $($IA$),$ or a financing activity $($FA$).$ For any element not affected by the event, leave the cell

blank. $($Not every cell will require entry. Do not round intermediate calculations. Enter any decreases to account balances and cash

outflows with a minus sign. Round your answers to the nearest whole dollar.$)$

$(1)$ The loan to Small Co$.$

$(2)$ The adjusting entry at December $31,$ Year $1.$

$(3)$ The adjusting entry and collection of the note on June $1,$ Year $2.$

RAINEY ENTERPRISES