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On January 1, Year 1, Brown Company borrowed cash from First Bank by issuing a $110,000 face-value, four-year term note that had an 6 percent annual interest rate. The note is to be repaid by making annual cash payments of $31,745 that include both interest and principal on December 31 of each year. Brown used the proceeds from the loan to purchase land that generated rental revenues of $62,000 cash per year.

Required

a. Prepare an amortization schedule for the four-year period. (Round intermediate calculations to nearest dollar amount. Round your answers to the nearest dollar amount.)

b. Prepare an income statement, balance sheet, and statement of cash flows for each of the four years. Rent revenue is collected in cash at the end of each year. (Hint: Record the transactions for each year in T-accounts before preparing the financial statements.)

Part A Question/Outline:

Part B Question/Outline:

Part B T accounts outline:

Part B Income statement outline:

Part B Balance sheet outline:

Part B Statement of Cash Flows outline:

[The following information applies to the questions displayed below.] On January 1, Year 1, Brown Company borrowed cash from First Bank by issuing a $110,000 face-value, four-year term note that had an 6 percent annual interest rate. The note is to be repaid by making annual cash payments of $31,745 that include both interest and principal on December 31 of each year. Brown used the proceeds from the loan to purchase land that generated rental revenues of $62,000 cash per year. Problem 10-26A (Algo) Part a Required a. Prepare an amortization schedule for the four-year period, (Round intermediate calculations to nearest dollar amount. Round your answers to the nearest dollar amount.) [The following information applles to the questions displayed below.] On January 1, Year 1, Brown Company borrowed cash from First Bank by issuing a $110,000 face-value, four-year term note that had an 6 percent annual interest rate. The note is to be repaid by making annual cash payments of $31.745 that include both interest and principal on December 31 of each year. Brown used the proceeds from the loan to purchase land that generated rental revenues of $62,000 cash per year. Problem 10-26A (Algo) Part b . Prepare an income statement, balance sheet, and statement of cash flows for each of the four years. Rent revenue is collected in cash at the end of each year. (Hint: Record the transactions for each year in T-accounts before preparing the financial statements.) b. Prepare an income statement, balance sheet, and statement of cash flows for each of the four years. Rent revenue is collected in cash at the end of each year. (Hint: Record the transactions for each year in T-accounts before preparing the financial statements.) Complete this question by entering your answers in the tabs below. Prepare an income statement for each of the four years. (Round your intermediate calculations and final answers to the nearest dollar amounts.) b. Prepare an income statement, balance sheet, and statement of cash flows for each of the four years. Rent revenue is collected in cash at the end of each year. (Hint: Record the transactions for each year in T-accounts before preparing the financial statements.) Complete this question by entering your answers in the tabs below. Prepare a balance sheet for each of the four years. (Round your intermediate calculations and final answers to the nearest dollar amounts.) Prepare a statement of cash flows for each of the four years. (Round your intermediate calculations and final answers to the nearest dollar amounts. Enter cash outflows with a minus sign.)

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