2 Required information Part 2 of 2 (The following information applies to the questions displayed below.) 1 points On January 1, Year 1, Brown Co. borrowed cash from First Bank by issuing a $117,000 face-value, four-year term note that had an 8 percent annual interest rate. The note is to be repaid by making annual cash payments of $35,325 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 $69,000 cash per year. b. Prepare an income statement, balance sheet, and statement of cash flows for each of the four years. (Hint: Record the transactions for each year in T-accounts before preparing the financial statements.) (Round your answers to the nearest dollar amount. Statement of Cash Flows only: Items to be deducted must be indicated with a minus sign.) X Answer is not complete. Cash Land Year 1 Year 1 1/1 117,000 35,325 12/31 12/31 69,000 1/1 ! Required information Cash Land Year 1 Year 1 1/1 117,000 35,325 12/31 12/31 69,000 1/1 0 0 End. Bal. 150,675 End. Bal. Year 2 End. Bal. 150,675 Year 3 End. Bal. 150,675 Year 4 ! Required information 150,675 End. Bal. Year 4 End. Bal. 150,675 Notes Payable Retained Earnings Year 1 Year 1 End. Bal. End. Bal. Year 2 Year 2 End. Bal. End. Bal. Year 3 Year 3 End. Bal. End. Bal. Year 4 Year 4 End. Bal. End. Bal. Rent Revenue Interest Expense Year 1 Year 1 End. Bal. End. Bal. Year 2 Year 2 End. Bal. End. Bal. Year 3 Year 3 BROWN CO. Income Statements For the Year Ended December 31 Year 1 Year 2 Year 3 Year 4 $ 0 % 0 % 0 % 0 Balance Sheets As of December 31 Year 1 Year 2 Year 3 Year 4 Assets Total assets $ 0 $ 0 $ 0 0 Liabilities Stockholders' equity Total liabilities and stockholders' equity $ 0 $ 0 $ 0