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	$ 210,000	$ 27,196	$ 10,500	$ 16,696
Year 2	193,304	27,196	9,665	17,531
Year 3	175,773	27,196	8,789	18,407

Required

Using a financial statements model, record the appropriate amounts for the following two events:

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

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

If the company earned $64,000 cash revenue and paid $46,000 in cash expenses in addition to the interest in Year 1, what is the amount of each of the following?

(1) Net income for Year 1.

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

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

What is the amount of interest expense on this loan for Year 4?

If the company earned $64,000 cash revenue and paid $46,000 in cash expenses in addition to the interest in Year 1, what is the amount of each of the following?

(1) Net income for Year 1.

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

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