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A partlal amortization schedule for a 10-year note payable that Mabry Company Issued on January 1, Year 1, Is shown as follows. Accounting Principal Balance January 1 $200, 000 Cュコム Applied to Applied to Principal $15,174 16, 084 Period Payment $27,174 Interest Year 1 $12,000 Year 2 184,826 27,174 11,090 Year 3 168, 742 27,174 10,125 17,049 Requlred

A partlal amortization schedule for a 10-year note payable that Mabry Company Issued on January 1, Year 1, Is shown as follows. Accounting Principal Balance January 1 $200, 000 Cュコム Applied to Applied to Principal $15,174 16, 084 Period Payment $27,174 Interest Year 1 $12,000 Year 2 184,826 27,174 11,090 Year 3 168, 742 27,174 10,125 17,049 Requlred

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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A partlal amortization schedule for a 10-year note payable that Mabry Company ISsued on January 1, Year 1, Is shown as follows. Accounting Principal Balance January 1 Cash Applied to Period Payment $27,174 Applied to Principal $15,174 Year 1 $200,000 Interest Year 2 $12,000 184,826 168,742 Year a 27,174 11,090 16,084 27,174 10,125 17,049 Required a. What rate of Interest Is Mabry Company paying on the note? b. Using a financlal statements model like the one shown, record the approprlate 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. c. If the company eamed $62,000 cash revenue and pald $45,000 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 operatlng activitles for Year 1. (3) Cash flow from financing activitles for Year 1. d. 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 C Required D what rate of interest is Mabry Company paying on the note? Rate of interest Required B > < Prev 7 of 20 Next >
Transcribed Image Text:A partlal amortization schedule for a 10-year note payable that Mabry Company ISsued on January 1, Year 1, Is shown as follows. Accounting Principal Balance January 1 Cash Applied to Period Payment $27,174 Applied to Principal $15,174 Year 1 $200,000 Interest Year 2 $12,000 184,826 168,742 Year a 27,174 11,090 16,084 27,174 10,125 17,049 Required a. What rate of Interest Is Mabry Company paying on the note? b. Using a financlal statements model like the one shown, record the approprlate 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. c. If the company eamed $62,000 cash revenue and pald $45,000 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 operatlng activitles for Year 1. (3) Cash flow from financing activitles for Year 1. d. 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 C Required D what rate of interest is Mabry Company paying on the note? Rate of interest Required B > < Prev 7 of 20 Next >
000 cash revenue and pald $45,000 in cash expenses In additon to the Interest In Year 1, wh amount of each of the following? (1) Net Income for Year 1. 2) Cash flow from operating activities for Year 1. (3) Cash flovw from financing activities for Year 1 d. 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 C Required D Using a financial statements model like the one shown, record the appropriate amounts for the following two events: (Ent account balances and cash outflows with a minus sign. In the Cash Flows column, designate the cash flows as operating a investing activities (IA), financing activities (FA), or if there is no effect, leave the cell blank. Not all cells will require entry. (1) January 1, Year 1, issue of the note payable. (2) December 31, Year 1, payment on the note payable. MABRY COMPANY Horizontal Statements Model Balance Sheet Income Statement Statement of Event No. Stockholder's Cash Flows Assets Liabilities Revenue Expense Net Income Equity 1. 2. <Required A Required C> < Prev 7 of 20 Next >
Transcribed Image Text:000 cash revenue and pald $45,000 in cash expenses In additon to the Interest In Year 1, wh amount of each of the following? (1) Net Income for Year 1. 2) Cash flow from operating activities for Year 1. (3) Cash flovw from financing activities for Year 1 d. 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 C Required D Using a financial statements model like the one shown, record the appropriate amounts for the following two events: (Ent account balances and cash outflows with a minus sign. In the Cash Flows column, designate the cash flows as operating a investing activities (IA), financing activities (FA), or if there is no effect, leave the cell blank. Not all cells will require entry. (1) January 1, Year 1, issue of the note payable. (2) December 31, Year 1, payment on the note payable. MABRY COMPANY Horizontal Statements Model Balance Sheet Income Statement Statement of Event No. Stockholder's Cash Flows Assets Liabilities Revenue Expense Net Income Equity 1. 2. <Required A Required C> < Prev 7 of 20 Next >
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