A partial amortization schedule for a 10-year note payable issued on January 1, Year 1, is...

 

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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 Year 3 Required Principal Balance January 1 $ 390,000 358,993 326,436 Cash Payment $ 50,507 50,507 50,507 Applied to Interest $ 19,500 17,950 16,322 Applied to Principal $ 31,007) 32,557 34,185 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 $100,000 cash revenue and paid $64,000 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? 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 Year 3 Required Principal Balance January 1 $ 390,000 358,993 326,436 Cash Payment $ 50,507 50,507 50,507 Applied to Interest $ 19,500 17,950 16,322 Applied to Principal $ 31,007) 32,557 34,185 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 $100,000 cash revenue and paid $64,000 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?

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a Using a financial statements model the appropriate amounts for the following two events are 1 Janu... View the full answer