Required: a. Show the effect of the following events on the financial statements by recording the appropriate amounts in a horizontal statements model. 1. Issued the bonds on January 1, Year 1. 2. Paid Interest due to bondholders on December 31, Year 1. 3. On January 1, Year 6, Arnold Corporation called the bonds. Assume that all interim entries were correctly recorded. b. Prepare journal entries for the three events listed in Requirement a Complete this question by entering your answers in the tabs below. Required A Required B Show the effect of the following events on the financial statements by recording the appropriate amounts in a horizontal statements model. (In the St. Flows column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). Leave blank to indicate that an affected by the event. Amounts to be deducted and cash outflows should be indicated with a minus sign.) 1. Issued the bonds on January 1, Year 1. 2. Paid interest due to bondholders on December 31, Year 1. 3. On January 1, Year 6, Arnold Corporation called the bonds. Assume that all interim entries were correctly recorded. Effect of Transactions on Financial Statements W Balance Sheet Event No. Assets Liabilities + Stockholders Equity Revenue Gain 1 2 3 Income Statement Expenses Loss Net income Statement of Cash Flows