A partial amortization schedule for a five-year note payable that Mura Co. issued on January 1, 2011 , is shown here:

Required

a. What rate of interest is Mura Co. paying on the note?

b. Using a financial statements model like the one shown below, record the appropriate amounts for the following two events:
(1) January 1,2011 , issue of the note payable.
(2) December 31,2012 , payment on the note payable.

c. If the company earned \(\$ 75,000\) cash revenue and paid \(\$ 35,000\) 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.

d. What is the amount of interest expense on this loan for 2013?

Accounting Period Principal Balance January 1 Cash Applied to Payment Interest Applied to Principal 2011 2012 $100,000 $25,046 $8,000 $17,046 82,954 25,046 6,636 18,410