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A partial amortization schedule for a 5-year note payable that Mabry Company issued on January 1, Year 1, is shown as follows, Accounting Period Year
A partial amortization schedule for a 5-year note payable that Mabry Company issued on January 1, Year 1, is shown as follows, Accounting Period Year 1 Year 2 Year 3 Principal Balance January 1 $129,000 107, 445 83,950 Cash Payment $33,165 33,165 33, 165 Applied to Interest $11, 610 9,670 7,556 Applied to Principal $21,555 23,495 25,609 Required a. What rate of interest is Mabry Company paying on the note? b. Using a financial statements model like the one shown, 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. c. If the company earned $85,300 cash revenue and paid $51,180 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. d. What is the amount of Interest expense on this loan for Year 4? Complete this question by entering your answers in the tabs below. Reqlred A CELE Required B Required C Required D What rate of interest is Mabry Company paying on the note? Rate of interest % MABRY COMPANY Event No. Horizontal Statements Model Balance Sheet Income Statement Stockholder's Llabilities Revenue Equity Expense = Net Income Assets Statement of Cash Flow 1. 2. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D If the company earned $85,300 cash revenue and paid $51,180 in cash expenses in addition to the interest in Year 1, what is the amount of each of the following? (Cash outflows should be indicated with a minus sign.) (1) Net income for Year 1 (2) Cash flow from operating activities for Year 1 (3) Cash flow from financing activities for Year 1 Complete this question by entering your answers in the tabs be Required A Required B Required C Required D What is the amount of interest expense on this loan for Year 4? (Round Interest expense
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