HIE 10 10 Scoped Exercise 10-4A (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 Accounting Period Year 1 Year 2 Principal Balance January 1 Principal $360,000 335,149 Year 3 300,310 Required Cash Paynent $53,651 Applied to Applied to Interest $28,000 $ 24,851 53,651 26,812 53,651 24,665 26,839 28,906 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 $94,000 cash revenue and paid $61,000 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 47 Complete this question by entering your answers in the tabs below. Requred A Required B1 Required 82 Required 3 Reared C 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 on the note payable. Note: In the Statement of Cash Flows column, indicate whether the item is an operating activity (OA), investing activity (TA), or fleancing activity (FA). Noe alt celts requir Amounts to be deducted and cash outflows should be indicated with a minus sign po Book (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? Complete this question by entering your answers in the tabs below. Required A Required 81 Required 82 Required 83 Required C 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 on the note payable. Note: In the Statement of Cash Flows column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). Not all cells requir Amounts to be deducted and cash outflows should be indicated with a minus sign. Financial Statements Model Balance Sheet Income Statement Event Number Assets Liabilities Stockholders' Equity Revenue Expenses Net Income Statement of Cash Flows 1. 2 2 Required A Required 81 > 10 points c. What is the amount of interest expense on this loan for Year 4? Complete this question by entering your answers in the tabs below. Skipped Required A Requed B1 Required B2 Required 83 Required C Book 10 @ If the company earned $94,000 cash revenue and paid $61,000 in cash expenses in addition to the interest in Year 1, what is the amount of Net income for Year 1? Hint Expenses Total expenses 1 ents Skipped (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 $94,000 cash revenue and paid $61,000 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? Complete this question by entering your answers in the tabs below. eBook Required A Required B1 Required B2 Required 83 Required C Hint If the company earned $94,000 cash revenue and paid $61,000 in cash expenses in addition to the interest in Year 1, what is the amount of Cash flow from operating activities for Year 17 Note: Amounts to be deducted and cash outflows should be indicated with minus sign, Cash flows from operating activities: Net cash flow from operating activities $ Check n 10 points Skipped eBook (2) December 31, Year 1, payment on the note payable. b. If the company earned $94,000 cash revenue and paid $61,000 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? Complete this question by entering your answers in the tabs below. Required A Required B1 Required B2 Required B3 Required C If the company earned $94,000 cash revenue and paid $61,000 in cash expenses in addition to the interest in Year 1, what is the amount of Cash flow from financing activities for Year 17 Note: Amounts to be deducted should be indicated with minus sign. Cash flows from financing activities: Hint Net cash flow from financing activities $ Skipped eBook Hint dyable. (2) December 31, Year 1, payment on the note payable. b. If the company earned $94,000 cash revenue and paid $61,000 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? Complete this question by entering your answers in the tabs below. Required A Required B1 Required B2 Required 83 Required C What is the amount of interest expense on this loan for Year 47 Note: Round your answer to the nearest dollar amount. Interest expense