A partial amortization schedule for a note payable with interest paid annually that was issued on January 1, Year 1, is shown next: Accounting Period Year 1 Principal balance January 1 Cash Payment $ 422,000 $ 55,500 Required A Required: a. What is the annual rate of interest charged on this loan? b. Using the horizontal 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. Complete this question by entering your answers in the tabs below. Required B Applied to Interest $ 16,880 What is the annual rate of interest charged on this loan? Annual rate of interest % Applied to Principal $ 38,620
A partial amortization schedule for a note payable with interest paid annually that was issued on January 1, Year 1, is shown next: Required: a. What is the annual rate of interest charged on this loan? b. Using the horizontal 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. Complete this question by entering your answers in the tabs below. What is the annual rate of interest charged on this loan? Using the horizontal 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. Note: In the Statement of Cash Flows column, use OA to designate operating activity, IA for investment activity, and FA for financing activity. Enter any decrease and cash outflows with a minus sign. Leave cells blank if no input is needed
