chapter 10 question 2

Required information [The following information applies to the questions displayed below.] On January 1, Year 1, Brown Company borrowed cash from First Bank by issuing a $114,000 face-value, fouryear term note that had an 8 percent annual interest rate. The note is to be repaid by making annual cash payments of $34,419 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 $66,000 cash per year. collected in cash at the end of each year. (Hint Record the transactions for each year in T-accounts before preparing the inancial statements.) Complete this question by entering your answers in the tabs below. Prepare T-accounts for each of the four years. Rent revenue is collected in cash at the end of each year. (Select "c" for all the closin intermediate calculations and final answers to the nearest dollar amounts.) Ending Balance Year 2 Ending Balance Year 3 Ending Balance Year 4 Ending Balance Ending Balance Year 2 Ending Balance Year 4 Ending Balance collected in cash at the end of each year. (Select "cl" for all the clo: ir amounts.) Prepare an income statement 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.) (1) Required information Cash flows from investing activities: Req B3 Reg 34