A partial amortization schedule for a 10-year note payable issued on January 1 Year 1. is shown next: Accounting Period Year 1 Year 2 Year 3 Principal Balance January 1 $230,000 211,714 192,514 - Cash Payment $29.786 29,786 29,786 Applied to Interest $11.500 10,586 9,626 Applied to Principal $18, 286 19,200 20, 160 Required a. Using a financial statements model like the one shown next, 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 $68,000 cash revenue and paid $48,000 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. 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 B1 Required C Using a financial statements model like the one shown next, 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. (In the Cash Flow column, use the initials OA to designate operating activity, LA for investing activity, FA for financing activity and NA to indicate the element is not affected by the event. Enter any decreases to account balances with a minus sign.) Show less Using a financial statements model like the one shown next, 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 $68,000 cash revenue and paid $48,000 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 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 B1 Required C Using a financial statements model like the one shown next, 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. (In the Cash Flow column, use the initials OA to designate operating activity. IA for investing activity, FA for financing activity and NA to indicate the element is not affected by the event. Enter any decreases to account balances with a minus sign.) Show less Effect of Transactions on Financial Statements Balance Sheet Income Statement Assets Liabilities - Equity Revenue - Expenses - Net Income Cash Flow Event No. Required BI > b. If the company earned $68,000 cash revenue and paid $48,000 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. c. What is the amount of interest expense on this loan for Year 4? Complete this question by entering your answers below. Required A Required B1 Required C If the company earned $68,000 cash revenue and the amount of Net income for Year 17 cash expenses in addition to the interest in Year 1, what is Expenses Total expenses Required a. Using a financial statements model like the one shown next, 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 $68,000 cash revenue and paid $48,000 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. c. What is the amount of interest expense on this loan for Year 4? Complete this question by entering your answers in the tabs Required A Required B1 Required What is the amount of interest expense on this loan for Year 47 (Round your answer to the nearest dollar amount.) Interest expense
