Question: A partial amortization schedule for a 10-year note payable issued on January 1, 2011, is shown below: Required a. Using a financial statements model like

A partial amortization schedule for a 10-year note payable issued on January 1, 2011, is shown below:

Required

a. Using a financial statements model like the one shown here, record the appropriate amounts for the following two events:

(1) January 1,2011 , issue of the note payable.

(2) December 31, 2011, payment on the note payable.

b. If the company earned $\$ 100,000$ cash revenue and paid $\$ 50,000$ in cash expenses in addition to the interest in 2011, what is the amount of each of the following?

(1) Net income for 2011.

(2) Cash flow from operating activities for 2011.

(3) Cash flow from financing activities for 2011.

c. What is the amount of interest expense on this loan for 2014?

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