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A partial amortization schedule for a 5-year note payable that Mabry Company issued on January 1, Year 1, Is shown as follows. Accounting Principal Cash Applied to Applied to Period Balance January 1 Payment Interont Principal Year 1 $103,000 $25,797 $8,240 $17.557 85,443 25,792 6,835 18,962 Year 3 66,481 25,797 5,318 20,479 Required a. What rate of interest is Mabry Company paying on the note? b. Using a financial statements model like the one shown, record the appropriate amounts for the following two events: (1) January 1, Year 1, Issue of the note payable. (2) December 31, Year 1, payment on the note payable. c. If the company earned $92,800 cash revenue and paid $55,680 in cash expenses in addition to the interest in Year 1, what is the amount of each of the following? (1) Net income for Year 1. (2) Cash flow from operating activities for Year 1. (3) Cash flow from financing activities for Year 1 d. What is the amount of interest expense on this loan for Year 4? Complete this question by entering your answers in the tabs below. Required a Required B Required Required What rate of interest is Mabry Company paying on the note? Rate of interest Required B > b. Using a financial statements model like the one shown, record the appropriate amounts for the following two events: (1) January 1, Year 1, issue of the note payable. (2) December 31, Year 1. payment on the note payable. c. If the company earned $92,800 cash revenue and paid $55,680 in cash expenses in addition to the interest in Year 1, what is the amount of each of the following? M) Net Income for Year 1. (2) Cash flow from operating activities for Year 1. (3) Cash flow from financing activities for Year 1. d. What is the amount of interest expense on this loan for Year 4? Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Using a financial statements model like the one shown, record the appropriate amounts for the following two events: (Enter any decrease account balances and cash outflows with a minus sign. In the Cash Flows column, designate the cash flows as operating activities (OA), i activities (IA), financing activities (FA), or if there is no effect, leave the cell blank. Not all cells will require entry) (1) January 1, Year 1, issue of the note payable: (2) December 31, Year 1, payment on the note payable. MABRY COMPANY Horizontal Statements Model Income Statement Stockholder's Revenue Expense Net Income Equity Event No Elance Sheet Liabilities Statement of Cash Flow Assets 1 2 Required A Required (2) December 31, Year 1, payment on the note payable. c. If the company earned $92,800 cash revenue and paid $55,680 in cas amount of each of the following? (1) Net Income for Year 1. (2) Cash flow from operating activities for Year 1. (3) Cash flow from financing activities for Year 1. d. What is the amount of interest expense on this loan for Year 4? Complete this question by entering your answers in the tabs below Required A Required B Requited Required D Required C If the company earned $92,800 cash revenue and paid $55,680 in cash exp the amount of each of the following? (Cash outflows should be indicated with ces (1) Net income for Year 1 (2) Cash flow from operating activities for Year 1 (3) Cash flow from financing activities for Year 1
