00 8 2 points eBook Exercise 7-9A (Algo) Financial statement effects of an installment note LO 7-5 Dan Dayle started a business by issuing an $94,000 face value note to First State Bank on January 1, Year 1. The note had an 6 percent annual rate of interest and a five-year term. Payments of $22,315 are to be made each December 31 for five years. Required a. What portion of the December 31, Year 1. payment is applied to interest expense and principal? b. What is the principal balance on January 1, Year 2? c. What portion of the December 31, Year 2, payment is applied to interest expense and principal? (Round your answers to the nearest dollar amount.) Hint Print References a. Interest expense Principal b. Principal balance c. Interest expense Principal 3 8 points Exercise 7-17A (Algo) Determining cash receipts from bond issues LO 7-8, 7-9 Required Compute the cash proceeds from bond issues under the following terms. For each case, indicate whether the bonds sold at a premium or discount. (Do not round intermediate calculations. Round your answers to nearest dollar amount.) eBook a. Pear, Inc. issued $197,000 of 10-year, 8 percent bonds at 102. b. Apple, Inc. issued $123,000 of five-year, 12 percent bonds at 97 Him c. Cherry Co. issued $187,000 of five-year, 6 percent bonds at 102 1/4. d Grape, Inc. issued $55,000 of four-year, 8 percent bonds at 97 Print References Cash Proceeds Discount or Premium