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

Accounting Period	Principal Balance January 1			Cash Payment			Applied to Interest			Applied to Principal
Year 1	$	360,000		$	53,651		$	28,800		$	24,851
Year 2		335,149			53,651			26,812			26,839
Year 3		308,310			53,651			24,665			28,986

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

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

2. (2) December 31, Year 1, payment on the note payable.

b. If the company earned $94,000 cash revenue and paid $61,000 in cash expenses in addition to the interest in Year 1, what is the amount of each of the following?

1. (1) Net income for Year 1.

2. (2) Cash flow from operating activities for Year 1.

3. (3) Cash flow from financing activities for Year 1.