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A partial amortization schedule for a 10-year note payable issued on January 1, Year 1,...

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Accounting

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 $390,000 $50,507 $19,500 $31,007 Year 2 358,993 50,507 17,950 32,557 Year 3 326,436 50,507 16,322 34,185 Required 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 $100,000 cash revenue and paid $64,000 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

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