A partial amortization schedule for a note payable with interest paid annually that was issued on January $1,$ Year $1,$ is shown next:

Required:

a$.$ What is the annual rate of interest charged on this loan?

b$.$ Using the horizontal 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.

Complete this question by entering your answers in the tabs below.

Using the horizontal 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.

Note: In the Statement of Cash Flows column, use OA to designate operating activity, IA for investment activity, and FA for financing activity. Enter any decreases to account balances

and cash outflows with a minus sign. Leave cells blank if no input is needed.