A partial amortization schedule for a 10-year note payable issued on January 1, 2013, is shown below:

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A partial amortization schedule for a 10-year note payable issued on January 1, 2013, is shown below:


A partial amortization schedule for a 10-year note payable issued


Required
a. Using a financial statements model like the one shown here, record the appropriate amounts for the following two events:
(1) January 1, 2013, issue of the note payable.
(2) December 31, 2013, payment on the note payable.

A partial amortization schedule for a 10-year note payable issued


b. If the company earned $60,000 cash revenue and paid $42,000 in cash expenses in addition to the interest in 2013, what is the amount of each of the following?
(1) Net income for 2013.
(2) Cash flow from operating activities for 2013.
(3) Cash flow from financing activities for 2013.
c. What is the amount of interest expense on this loan for2016?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Related Book For  book-img-for-question

Fundamental financial accounting concepts

ISBN: 978-0078025365

8th edition

Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward

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