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Rainey Enterprises loaned $$35,000$ to Small Company on June $1,$ Year $1,$ for one year at $8$ percent interest.

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Show the effects of the following transactions in a horizontal statements model.

Note: 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 Company

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

$(3)$ The adjustment and collection of the note on June $1,$ Year $2.(1)$ The loan to Small Company

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

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

$\backslash$table$[[$RAINEY ENTERPRISES$],[$Date$,$Horizontal Statements Model,$],[$Balance Sheet,Income Statement,$\backslash$table$[[$Statement of C$],[$Flows$]]],[$Assets$,=,$Liabilities,$+,\backslash$table$[[\backslash$table$[[$Stockholders$\text{'}],[$Equity$]]],[$Retained$],[$Earnings$]]],[$Cash$,+,\backslash$table$[[$Notes$],[$Receivable$]],+,\backslash$table$[[$Interest$],[$Receivable$]],$Revenue,$-,$Expense,$=,$Net Income$],[6/1/$Year $1,,+,,+,,=,,+,,,-,,=,,],[12/31/$Year $1,,+,,+,,=,,+,,,-,,=,,],[6/1/$Year $2$ Adjustment,,$+,,+,,=,,+,,,-,,=,,],[6/1/$Year $2$ Note Collection,,$+,,+,,=,,+,,,-,,=,,],[,,,,,,,,,,,,,,,]]$

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