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D Required information (The following information applies to the questions displayed below) On January 1, Year 1, Brown Company borrowed cash from First Bank by

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D 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 $108,000 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 $31,168 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 $60,000 cash per year 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.) Cash Land Year 1 Year 1 Ending Balance Ending Balance Year 2 Ending Balance Year 3 Ending Balance Year 4 Ending Balance Notes Payable Retained Earnings Year 1 Year 1 Ending Balance Year 2 Ending Balance Year 2 Ending Balance Year 3 Ending Balance Year 3 Ending Balance Year 4 Ending Balance Year 4 Ending Balance Ending Balance Rent Revenue Interest Expense Year 1 Year 1 Ending Balance Year 2 Ending Balance Year 2 Ending Balance Year 3 Ending Balance Year 3 Ending Balance Year 4 Ending Balance Year 4 Ending Balance Ending Balance BROWN COMPANY Balance Sheets As of December 31 Year 1 Year 2 Year 3 Year 4 Assets 5 0 $ 0 $ 0 $ Total assets Liabilities 05 Stockholders' equity $ Total liabilities and stockholders' equity 0 $ 0$ 0 0 $ of 2 BROWN COMPANY Statements of Cash Flows For the Year Ended December 31 Year 1 Year 2 Year 3 Year 4 Cash flows from operating activities: 25657 0 0 0 0 look Net cash flow from operating activities: Cash flows from investing activities: int rences 0 0 0 0 Net cash flow from investing activities Cash flows from financing activities: 0 0 0 0 Net cash flow from financing activities Net change in cash Ending cash balance 0 $ $

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