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A partial amortization schedule for a 10-year note payable issued on January 1, Year 1, is shown next: Accounting Principal Cash Applied to Period Balance

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A partial amortization schedule for a 10-year note payable issued on January 1, Year 1, is shown next: Accounting Principal Cash Applied to Period Balance January 1 Applied to Payment Interest Principal Year 1 $210,000 $27, 196 $10,500 $16,696 Year 2 193,304 27.196 9.665 17,531 Year 3 175,773 27, 196 8,789 18,407 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 $64,000 cash revenue and paid $46,000 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 B1 Required B2 Required By 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 on the note payable. (In the Statement of Cash Flows column, indicate whether the item is an operating activity (OA), Investing activity (IA), or financing activity require input. Amounts to be deducted and cash outflows should be indicated with a minus sign) Financial Statements Model Income Statement Event No Balance Sheet Liabilities Assets Stockholders Equity Revenue Statement of Cash Flows Expenses Net Income 1 2 . Req Required 1> Expenses Total expenses 0 $ 0 Cash flows from operating activities: Net cash flow from operating activities $ 0 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

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