Exercise $7-10$A $($Algo$)$ Amortization of a long$-$term loan LO $7-5$

A partial amortization schedule for a $5-$year note payable that Mabry Company issued on January $1,$ Year $1,$ is shown as follows.

Accounting Period Principal Balance January $1$ Cash Payment Applied to Interest Applied to Principal

Year $1$ $$123,000$ $$33,280$ $$13,530$ $$19,750$

Year $2103,25033,28011,35821,922$

Year $381,32833,2808,94624,334$

Required:

What rate of interest is Mabry Company paying on the note?

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 $$80,300$ cash revenue and paid $$48,180$ 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 $1.$