Exercise 10-4A Financial statement effects of an installment note LO 10-1 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 rear 3 Principal Balance January 1 $350,000 322,173 292,55 Cat t 545,327 45,322 45,327 Applied to Interest $17.500 16,109 14,640 Applied to Principal 527,827 29,211 30.679 Required a. Using a financial statements model like the one shown next, record the appropriate amounts for the following two events (1) January 1, Year 1, issue of the note payable (2) December 31, Yeart, payment on the note payable. b. If the company earned 592,000 cash revenue and paid $60,000 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? Complete this question by entering your answers in the tabs below. Required A Required quired 152 Required Required Using a financial statements model ke the one shown next, 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 not payable in the statement of Cash Flow column, use the initials CA to designate operating activity, IA for investing activity, FA for Financing activity and NA to indicate the cement is not affected by the event. Enter any decreases to account balances with a mission.) Show less Electol Transaction Financial Statements Income State b. If the company earned $92,000 cash revenue and paid $60,000 in cash expenses in addition to the interest in Year 1 what is the amount of each of the following? (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? Complete this question by entering your answers in the tabs below. Required A Required B Required B2 Required B3 Required Using a financial statements model like the one shown next, 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. (In the Statement of Cash Flows column, use the initials OA to designate operating activity, IA for investing activity, FA for Financing activity and NA to indicate the element is not affected by the event. Enter any decreases to account balances with a minus sign.) Show less Efect of Transactions on Financial Statements Balance Sheet Income Statement Equity Revenue Expenses Net Income Evento Statement of Cash Flows 1 2 Required 81 > b. If the company earned $92,000 cash revenue and paid $60,000 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? Complete this question by entering your answers in the tabs below. Required A Required 1 Required B2 Required 33 Required If the company earned $92,000 cash revenue and paid $60,000 in cash expenses in addition to the interest in Year 1, what is the amount of Net income for Year 1? Expenses Total expenses Required o. Using a financial statements model like the one shown next, 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 $92,000 cash revenue and paid $60,000 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? Complete this question by entering your answers in the tabs below. Required A Required 31 Required B2 Required 3 Required If the company earned $92,000 cash revenue and paid $60,000 in cash expenses in addition to the interest in Year 1, what is the amount of cash flow from operating activities for Year 17 Amount to be deducted should be indicated with minus sign.) Cash flows from operating activities: Not cash flow from operating activities Required a. Using a financial statements model like the one shown next, 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 $92000 cash revenue and paid $60,000 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? Complete this question by entering your answers in the tabs below. Required Required 1 Required 02 Requirid B Required If the company earned $92,000 cash revenue and paid $60,000 in cash expenses in addition to the interest in Year 1, what is the amount of cash flow from financing activities for Year 17 (Amount to be deducted should be indicated with minus sign.) Cash flows from financing activities Net cash flow from financing activities b. If the company earned $92,000 cash revenue and paid $60,000 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? Complete this question by entering your answers in the tabs below. Required A Required 1 Required B2 Required 33 Required If the company earned $92,000 cash revenue and paid $60,000 in cash expenses in addition to the interest in Year 1, what is the amount of Net income for Year 1? Expenses Total expenses Required o. Using a financial statements model like the one shown next, 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 $92,000 cash revenue and paid $60,000 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? Complete this question by entering your answers in the tabs below. Required A Required 31 Required B2 Required 3 Required If the company earned $92,000 cash revenue and paid $60,000 in cash expenses in addition to the interest in Year 1, what is the amount of cash flow from operating activities for Year 17 Amount to be deducted should be indicated with minus sign.) Cash flows from operating activities: Not cash flow from operating activities Required a. Using a financial statements model like the one shown next, 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 $92000 cash revenue and paid $60,000 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? Complete this question by entering your answers in the tabs below. Required Required 1 Required 02 Requirid B Required If the company earned $92,000 cash revenue and paid $60,000 in cash expenses in addition to the interest in Year 1, what is the amount of cash flow from financing activities for Year 17 (Amount to be deducted should be indicated with minus sign.) Cash flows from financing activities Net cash flow from financing activities