Question: 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

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 $370,000 $52,680 $25,900 $26,780
Year 2 343,220 52,680 24,025 28,655
Year 3 314,565 52,680 22,020 30,660

Required

  1. Using a horizontal statements model, 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.

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