A partial amortization schedule for a 10-year note payable issued on January 1, Year 1, is shown next: Accounting Principal Cash Applied to Applied to Period Balance January 1 Payment Interest Principal Year 1 $220,000 $29,891 $13,200 $16,691 Year 2 203,309 29,891 12,199 17,692 Year 3 185,617 29,891 11,137 18, 754 Required a. Using a financial statements model, 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, b. If the company earned $66,000 cash revenue and pald $47,000 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. c. 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 1 Required B2 Required B3 Required Using a financial statements model, record the appropriate amounts for the following two events: (1) January 1, Year 1, Issue of the note payable. (2) December 31 on the note payable. (In the Statement of Cash Flows column, indicate whether the item is an operating activity (OA), investing activity (TA), or financing activity (F require input. Amounts to be deducted and can outflows should be indicated with a minus sign) Financial Statements Model Balance Sheet Income Statement Statement of Cash Flows Event No. Liabilities Assets Stockholders Equity Revenue Net Income Expenses 1. 2 . Required A Rezulred B1 Required B2 Required B3 Required C If the company earned $66,000 cash revenue and paid $47,000 in cash expenses in addition to the interest in Year 1, what is the amount of Net Income for Year 1? Expenses Total expenses Complete this question by entering your answers in the tabs below. Required A Required B1 Roauired B2 Required 83 Required If the company earned $66,000 cash revenue and paid $47,000 in cash expenses in addition to the interest in Year 1, what is the amount of Cash flow from operating activities for Year 1? (Amounts to be deducted and cash outflows should be indicated with minus sign.) Cash flows from operating activities: Net cash flow from operating activities Required A Required B1 Required B2 Required B3 Required C If the company earned $66,000 cash revenue and paid $47,000 in cash expenses in addition to the interest in Year 1, what is the amount of cash flow from financing activities for Year 1? (Amounts to be deducted should be indicated with minus sign.) Cash flows from financing activities: Net cash flow from financing activities Required A Required B1 Required B2 Required B3 Required C What is the amount of interest expense on this loan for Year 4? (Round your answer to the nearest dollar amount.) Interest expense
