A partial amortization schedule for a 10-year note payable Issued on January 1: Year 1, is shown next: Accounting Principal Cash Applied to Applied to Period Balance January 1 Payment Interest Principal Year 1 $220,000 $29,891 $13,200 $16,691 Year 2 203,399 29,891 12,199 17,692 Year 3 185,617 29,891 11,137 18,754 Required a. Using a financial statements model like the one shown next, record the appropriate amounts for the following two events: 6) January 1, Year 1, Issue of the note payable. (2) December 31, Year 1, payment on the note payable. b. If the company earned $66,000 cash revenue and paid $47,000 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? 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 Using a financial statements model like the one shown next, record the appropriate amounts for the following two events: (1) January 1, Year 1, Issu the note payable. (2) December 31, Year 1, payment on the note payable. (In the Statement of Cash Flows column, use the initials A to designate operating activity, IA for investing activity, FA for financing activity and Na to indicate the element is not affected by the event. Enter any decreases account balances with a minus sign) Show less Event No Effect of Transactions on Financial Statements Balance Sheet Income Statement Assets Liabilities Equity Revenue Expenses - Not Income 220,000 220.000 29 810 (16,891) (13,200) 13200 (13,200) 1 Statement of Canh Flows 220,000 FA (16,601) FA POA 2 Required 81 > (3) Cash flow from financing activities tor 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 31 Required B2 Required B3 Required if the company earned $66,000 cash revenue and paid $47,000 in cash expenses in addition to the Interest in Year 1, what is the amount of Net Income for Year 17 Lease revenue Expenses int Total expenses 0 0 Complete this question by entering your answers in the tabs below. Required A Required B1 Required B2 Required B3 Required If the company earned $66,000 cash revenue and paid $47,000 in cash expenses in addition to the interest in Year 1, what is the amount of Cash flow from operating activities for Year 1? (Amounts to be deducted should be indicated with minus sign.) Cash flows from operating activities: Net cash flow from operating activities $ 0 Complete this question by entering your answers in the tabs below. Required A Required B1 Required B2 Required B3 Required if the company earned $66,000 cash revenue and paid $47,000 in cash expenses in addition to the interest in Year 1, what is the amount of Cash flow from financing activities for Year 1? (Amounts to be deducted should be indicated with minus sign.). Cash flows from financing activities Net cash flow from financing activities $ 0 Complete this question by entering your answers in the tabs below. Required A Required B1 Required B2 Required B3 Required What is the amount of interest expense on this loan for Year 4? (Round your answer to the nearest dollar amount. Interest expense Required 63 Regulus
