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 $290,000 266,944 242,735 Cash Payment $37,556 37,556 37,556 Applied to Interest $14,500 13,347 12,137 Applied to Principal $23,056 24,209 25,419 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 $80,000 cash revenue and paid $54,000 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? c. What is the amount of interest expense on this loan for Year 4? Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B1 Required B2 Required B3 Required C 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 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 (FA). No require input. Amounts to be deducted and cash outflows should be indicated with a minus sign.) : Financial Statements Model Balance Sheet Income Statement Event No. Assets Liabilities + Stockholders' Equity Revenue Expenses Statement of Cash Net Flows Income 290,000FA (14,500) (23,056) FA ( 1. 290,000 = (37,556) = 290.000 + (23,056) + 2. (14,500) 14,500 = + c. What is the amount of interest expense on this loan for Year 4? Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B1 Required B2 Required B3 Required C If the company earned $80,000 cash revenue and paid $54,000 in cash expenses in addition to the interest in Year 1, what is the amount of Net income for Year 1? Revenue 80,000 Expenses Operating expenses Interest expense $ 54,000 14,500 Total expenses (68,500) 11,500 Net income $ c. What is the amount of interest expense on this loan for Year 4? Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B1 Required B2 Required B3 Required C If the company earned $80,000 cash revenue and paid $54,000 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: Outflow for expenses 73,000 Inflow from customers 80,000 Net cash flow from operating activities $ 153,000 c. What is the amount of interest expense on this loan for Year 4? X Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B1 Required B2 Required B3 Required C If the company earned $80,000 cash revenue and paid $54,000 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 dedu ed should be indicated with minus sign.) Cash flows from financing activities: Inflow from issue of note 290,000 (23,056) Outflow to repay note Net cash flow from financing activities 266,944 (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 $80,000 cash revenue and paid $54,000 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? > Answer is not complete. Complete this question by entering your answers in the tabs below. 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 $ 15,212 X
