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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 $183,000 85,789 67,029 Cash Payment $26,481 26,481 26,481 Applied to Interest $ 9,278 7,721 6,833 Applied to Principal $17,211 18,760 20,448 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 $93,800 cash revenue and paid $56 280 in cash expenses in addition to the interest in Year what is the amount of each of the followingo (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
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