Rainey Enterprises loaned $$45,000$ to Small Company on June $1,$ Year $1,$ for one year at $6$ percent interest.

Required:

Show the effects of the following transactions in a horizontal statements model.

Note: Enter any decreases to account balances and cash outflows with a minus sign. For changes on the Statement of Cash Flows, indicate whether the item is an operating activity $($OA$),$ investing activity $($IA$),$ or financing activity $($FA$).$ Not all cells require input. Do not round intermediate calculations. Round your final answers to the nearest whole dollar.

$(1)$ The loan to Small Company

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

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

RAINEY ENTERPRISES

Horizontal Statements Model

$\backslash$table$[[$Date$,$Balance Sheet,Income Statement,$\backslash$table$[[$Statement of Cash$],[$Flows$]]],[$Assets$,=,$Liabilities,$+,\backslash$table$[[$Stockholders$\text{'}],[$Equity$]]],[$Cash$,+,\backslash$table$[[$Notes$],[$Receivable$]],+,\backslash$table$[[$Interest$],[$Receivable$]],\backslash$table$[[$Retained$],[$Earnings$]],$Revenue,$-,$Expense,$=,$Net Income$],[1.\frac{6}{1}\frac{?}{?}$ Year $1,(45,000),+,45,000,+,,=,,+,,$F$,-,,=,,\backslash$table$[[(45,000),$IA$]]],[2.\frac{12}{31}\frac{?}{?}$ Year $1,,+,,+,,=,,+,-,7,-,,=,,p$