Rainey Enterprises loaned $45,000 to Small Co. on June 1, Year 1, for one year at 7 percent interest Required Show the effects of the following transactions in a horizontal statements model. (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 Co (2) The adjustment at December 31, Year 1. (3) The adjustment and collection of the note on June 1, Year 2. Balance Sheet RAINEY ENTERPRISES Horizontal Statements Model Stockholders' Income Statement Assets Liabilities Date Cash Notes Receivable Interest Receivable Equity Retained Earnings Revenue Expense Net Income (45,000) + 1 6/1/Year 11 2 12/31/Year 1 3 6/1/Year 2 Adjustment 6/1/Year 2 Note Collection 48,150 Statement of Cas Flows