Norman Co borrowed $15,000 from the local bank in April 1 2012 when the company was started. The note has an 8 percent annual interest rate and a one year term maturity. Norman co recognized $42000 of the revenue on account in 2012 and $56,000 of revenue on account in 2013. Cash collections from accounts receivable were $38000 in 2012 and $58000 in 2013. Norman Co paid $26000 of salaries expense in 2012 and $32000 of salaries expense on 2013. Normal Co paid the loan and interest at the maturity date.