A partial amortization schedule for a 10-year note payable issued on January 1, Year 1, is...
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A partial amortization schedule for a 10-year note payable issued on January 1, Year 1, is shown next: Accounting Period Year 1 Year 2 Year 3 Required Principal Balance January 1 $ 210,000 193,304 175,773 Cash Payment $ 27,196 27,196 27, 196 Applied to Applied to Interest Principal $ 10,500 $ 16,696 9,665 8,789 17,531 18,407 a. 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. b. 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. c. What is the amount of interest expense on this loan for Year 4? A partial amortization schedule for a 10-year note payable issued on January 1, Year 1, is shown next: Accounting Period Year 1 Year 2 Year 3 Required Principal Balance January 1 $ 210,000 193,304 175,773 Cash Payment $ 27,196 27,196 27, 196 Applied to Applied to Interest Principal $ 10,500 $ 16,696 9,665 8,789 17,531 18,407 a. 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. b. 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. c. What is the amount of interest expense on this loan for Year 4?
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a Using a financial statements model the appropriate amounts for the following two events are 1 Janu... View the full answer
Related Book For
Introductory Financial Accounting for Business
ISBN: 978-1260299441
1st edition
Authors: Thomas Edmonds, Christopher Edmonds
Posted Date:
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