A partial amortization schedule for a 10-year note payable issued on January 1, Year 1, is shown next:

Accounting Period	Principal Balance January 1			Cash Payment			Applied to Interest			Applied to Principal
Year 1	$	380,000		$	49,212		$	19,000		$	30,212
Year 2		349,788			49,212			17,489			31,723
Year 3		318,065			49,212			15,903			33,309

Required a. Using a financial statements model like the one shown next, record the appropriate amounts for the following two events:

1. (1) January 1, Year 1, issue of the note payable.
2. (2) December 31, Year 1, payment on the note payable.

b. If the company earned $98,000 cash revenue and paid $63,000 in cash expenses in addition to the interest in Year 1, what is the amount of each of the following?

1. (1) Net income for Year 1.
2. (2) Cash flow from operating activities for Year 1.
3. (3) Cash flow from financing activities for Year 1.

c. What is the amount of interest expense on this loan for Year 4?