A partial amortization schedule for a 5-year note payable that Mabry Company issued on January 1, 2018, is shown as follows.

Accounting Period	Principal Balance January 1			Cash Payment			Applied to Interest			Applied to Principal
2018	$	133,000		$	34,193		$	11,970		$	22,223
2019		110,777			34,193			9,970			24,223
2020		86,554			34,193			7,790			26,403

2. Using a financial statements model like the one shown, record the appropriate amounts for the following two events: (Enter any decreases to account balances and cash outflows with a minus sign. In the Cash Flows column, designate the cash flows as operating activities (OA), investing activities (IA), financing activities (FA), or if there is no effect, leave the cell blank.)

1. (1) January 1, 2018, issue of the note payable.

2. (2) December 31, 2018, payment on the note payable.