Exercise $10-4$A $($Algo$)$ Financial statement effects of an installment note LO $10-1$

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

$\backslash$table$[[,$Principal,,,$],[$Accounting$,$Balance,Cash,Applied to$,$Applied to$,,,,],[$Period$,$January $1,$Payment,Interest,Principal,,,,$],[$Year $1,$$$310,000,$$$42,119,$$$18,600,$$$23,519,,,,],[$Year $2,286,481,42,119,17,189,24,930,,,,],[$Year $3,261,551,42,119,15,693,26,426,,,,]]$

a$.$ Using a 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.

b$.$ If the company earned $$84,000$ cash revenue and paid $$56,000$ 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 $1.$

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