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A partial amortization schedule for a 5-year note payable that Mabry Company issued on January 1, Year 1, is shown as follows. Accounting Principal Cash Applied to Applied to Period Balance January 1 Payment Interest Principal Year 1 $125,800 $32,975 $12,500 $20,475 Year 2 184,525 32,975 10,453 22,522 Year 3 82,883 32,975 8,200 24,775 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 $99,600 cash revenue and paid $59,760 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? Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Using a financial statements model like the one shown, record the appropriate amounts for the following two events: (Enter any decreases to account balances and cash outflows with a minus sign. In the Cash Flows column, designate the cash flows as operating activities (OA), investing activities (IA), financing activities (FA), or if there is no effect, leave the cell blank. Not all cells will require entry.) (1) January 1, Year 1, issue of the note payable. (2) December 31, Year 1, payment on the note payable. Show less Balance Sheet MABRY COMPANY Horizontal Statements Model Income Statement Stockholder's Revenue Expense Net Income Equity Event No. Statement of Cash Flow Assets Liabilities 1. 125,000 2. Required A Required C > Scriedule -year role payable Mabry Company issued on January 1, Yedt I, IS STIWII dS TUNTUWS. Accounting Period Year 1 Year 2 Year 3 Principal Balance January 1 $125,000 184,525 82,083 Cash Payment $32,975 32,975 32,975 Applied to Interest $12,500 10,453 8,200 Applied to Principal $20,475 22,522 24,775 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 $99,600 cash revenue and paid $59,760 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? Complete this question by entering your answers in the tabs below. Required A Required B Required Required D If the company earned $99,600 cash revenue and paid $59,760 in cash expenses in addition to the interest in Year 1, what is the amount of each of the following? (Cash outflows should be indicated with a minus sign.). (Net income for Year 1 (2) Cash flow from operating activities for Year 1 (3) Cash flow from financing activities for Year 1
