Chapter $7$ Application

$5$

Part $1$ of $4$

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 $$55,500$ face value, four$-$year term note that had an $5$ percent annual interest rate. The note is to be repaid by making annual cash payments of $$15,652$ 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 $$28,305$ cash per year.

Required

a$.$ Prepare an amortization schedule for the four$-$year period.

Note: Round your answers to the nearest whole dollar amount.

$\backslash$table$[[$BROWN COMPANY$],[$Year$,\backslash$table$[[$Principal Balance$],[$on January $1]],\backslash$table$[[$Cash Payments$],[$December $31]],\backslash$table$[[$Applied to$],[$Interest$]],\backslash$table$[[$Applied to$],[$Principal$]],\backslash$table$[[$Principal Balance$],[$End of Period$]],],[$Year $1,,,,,,],[$Year $2,,,,,,],[$Year $3,,,,,,],[$Year $4,,,,,,]]$