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Record the credit card sales and the subsequent collection of accounts receivable in a horizontal statements model. In the Statement of Cash Flows column, indicate whether the item is an operating activity $($OA$),$ investing activity $($IA$),$ or financing activity $($FA$).$

Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed.

$\backslash$table$[[$ULTRA DAY SPA$],[$Horizontal Statements Model$],[$Event$,$Balance Sheet,Income Statement,$\{$

$\backslash$table$[[$Statement of$],[$Cash Flows$]]\}],[$Assets$,=,$Liability,$+,\backslash$table$[[\backslash$table$[[\backslash$table$[[$Stockholders$\text{'}],[$Equity$]]],[$Retained$],[$Earnings$]]]],$Revenue,$-,$Expenses,$=,\backslash$table$[[$Net$],[$Income$]]],[$Cash$,+,\backslash$table$[[$Accounts$],[$Receivable$]]],[1.,,+,120,000\backslash$times $,=,,+,120,000\backslash$times $,120,000,-,,=,,,],[2.,114,000>,+,(120,000)$x$,=,,+,(6,000)\backslash$times $,,-,6,000\backslash$times $,=,,114,000>,$OAvv$]]$ Rainey Enterprises loaned $$20,000$ 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. In the Statement of Cash Flows column, indicate whether the item is an operating activity $($OA$),$ an investing activity $($IA$),$ or a financing activity $($FA$).$ For any element not affected by the event, leave the cell blank.

Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed.

$(1)$ The loan to Small Company

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

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

$\backslash$table$[[$RAINEY ENTERPRISES$],[$Horizontal Statements Model$],[,$Date,Balance Sheet,Income Statement,,$],[,$Assets,,Liabilities,$+,\backslash$table$[[$Stockholders$\text{'}],[$Equity$]],$Revenue,$-,$Expenses,$=,$Net Income,$\{$

$\backslash$table$[[$Statement of Cash$],[$Flows$]]\}],[,$Cash,$+,\backslash$table$[[$Notes$],[$Receivable$]],+,\backslash$table$[[$Interest$],[$Receivable$]],,$Retained Earnings$],[1.,6/1/$Y$1,,+,(20,000),+,20,000,=,,+,,,-,,=,,(20,000),$IA$],[2.,12/31/$Y$1,,+,,+,700,=,,+,700,700,-,,=,700,,?],[3.,6/1/$Y$2($Adjusting entry$),,+,1,200,+,(700),=,,+,500,500,-,,=,500,1,200,$OA$],[3.,,,+,20,000,+,(20,000),=,,+,,,-,,=,,20,000,$OA$],[3.,6/1/12($Collection of the note$),,,,,,,,,,,,,,,,]]$

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