The following transactions apply to Hooper Company for Year $1,$ its first year of operations:

Issued $$120,000$ of common stock for cash.

Provided $$100,000$ of services on account.

Collected $$86,000$ cash from accounts receivable.

Loaned $$13,000$ to Mosby Company on November $30,$ Year $1.$ The note had a one$-$year term to maturity and a $8$ percent interest rate.

Paid $$42,000$ of salaries expense for the year.

Paid a $$3,000$ dividend to the stockholders.

Recorded the accrued interest on December $31,$ Year $1($see item $4).$

Determined that $$680$ of accounts receivable were uncollectible. Hooper Company uses the direct write$-$off method.

Required

Record the above transactions in general journal form.

Post the entries to T$-$accounts.

Prepare the income statement, balance sheet, and statement of cash flows for Year $1.$

Show the effects of the above transactions in a horizontal statements model. When you record amounts in the Statement of Cash Flows column, indicate whether the item is an operating activity $($OA$),$ investing activity $($IA$),$ financing activity $($FA$),$ or net change $($NC$).$ Leave blank to indicate that an element is not affected by the event.