A partial amortization schedule for a ten-year note payable that Muro Co. issued on January 1, 2012, is shown here:
Accounting Period Principal Balance Jan 1 Cash Payment Applied to Interest Applied to Principal
- 2012 $200,000 $32,549 $20,000 $12,549
- 2013 187,451 32,549 18,745 13,804
b. Using a financial statements model like the one shown below, record the appropriate amounts for the following two events. (1) January 1, 2012 issue of the note payable. (2) December 31, 2012 payment on the note payable.
Event No. 1 Assets = Liab. + Equity Rev. - Exp. = Net Inc. Cash Flow
c. If the company earned $75,000 cash revenue and paid $35,000 in cash expenses in addition to the interest in 2012, what is the amount of each of the following? (1) Net income for 2012 (2) Cash flow from operating activities for 2012 (3) Cash flow from financing activities for 2012.
d. What is the amount of interest expense on this loan for 2014?