Exercise 7-10A (Algo) Amortization of a long-term loan LO 7-5 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 Principal Balance January 1 Cash Payment Applied to Interest Applied to Principal Year 1 Year 2 Year 3 $112,000 $30,304 $12,320 94,016 74,054 30,304 10,342 30,304 8,146 $17,984 19,962 22,158 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 $92,700 cash revenue and paid $55,620 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?