A partial amortization schedule for a note payable with interest paid annually that was issued on January $1,$ Year $1,$ is shown next:

Required:

a$.$ What is the annual rate of interest charged on this loan?

b$.$ Using the horizontal 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.

Complete this question by entering your answers in the tabs below.

Required $A$

Using the horizontal 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.

Note: In the Statement of Cash Flows column, use OA to designate operating activity, IA for investment activity, and FA for financing activity. Enter an

and cash outflows with a minus sign. Leave cells blank if no input is needed.