The Jarvis Company issued a $22,000 face value interest bearing note with a stated interest rate of 9.2%, and a one-year term. The note was issued to the National Bank on August 1, 2011.

The amount of interest expense and cash outflows shown on the 12/31/2012 financial statements would be: (Round your answer to nearest whole number.)

Interest Expense

Cash Outflow

$843

$2,024

$2,024

$23,687

$1,181

$24,024

$2,024

$22,000