On January 1, 2004, Waldman Enterprises purchased machinery on credit by signing a note payable for the full purchase price. The note payable called for interest to be paid on the unpaid balance and required three equal end-of-year payments. Waldman's accounting staff prepared the following amortization table related to the note:

Required
A. What was the purchase price of the machinery?
B. What was the interest rate called for by the note?
C. By what amount was the principal balance of the note reduced during the first year?
D. What amount will be reported on Waldman's year 2 income statement regarding this note? What will it be labeled?
E. What amount will be reported on Waldman's year 3 statement of cash flows regarding this note?
F. What amount will be reported on Waldman's year 1 balance sheet regarding this note? In what section and under what title will it bereported?

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Balance at Beginning of Year 2,577.10 1,783.27 925.93 Balance at End of Year Interest Expense 206.17 142.66 74.07 End-of-Year Payment 1,000.00 1,000.00 1,000.00 Year 2