The following transactions apply to DeGrom Co. for 2016, its first year of operations.

Problem 5-2 The following transactions apply to DeGrom Co. for 2016, its first year of operations. 1. Issued 2. Provided 3. Collected . Loaned $360,000 $294,000 $231,000 $37,500 of common stock for cash of services on account cash from accounts receivable to Horne Co. on September 1, 2016. The note had a one-year term to maturity and an 3% interest rate. Paid Paid a Recorded the accrued interest income on December 31, 2016 (see item 4) Uncollectible accounts expense is estimated to be $111,000 $8,400 of salaries expense for the year. dividend to the stockholders 5. 6. 7. 8. 2.0% of service revenue on account. 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 2016. a. b