i need help where there is red x's and also with completing the statements of cash flows at the second to last picture. i also dont know what the very last picture is missing but woukd rather get help on other stuff first.
please set it up like mine so it is easy to follow. and only answer if youre sure because this is my 3rd time posting since the other 2 werent completely right.
Required information Problem 10-26A Effect of an installment note on financial statements LO 10-1 The following information applies to the questions displayed below! On January 1, Year 1, Brown Co. borrowed cash from First Bank by issuing a $113,000 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 $32,611 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 $65,000 cash per year. Problem 10-26A Part b 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.) Answer is not complete. Land Cash Year 1 Year 1 1/1 113.000 113,000 113,000 65,000 32.611 12/31 End. Bal 113.000 32 389 End. Bal Year 2 $ 65,000 32,389 97,167 32.611 12/31 End. Bal. Year 3 1/1 S X 65,000 64,778X32,61112/31 194,334 End. Bal. Year 4 1/1 X 97,167 65,000 323,890 > 32,611 12/31 End. Bat. Notes Payable Retained Earnings Year 1 Year 1 12/31 25,831 113,000 1/1 58,220 12/31 X 58,220 X 58,220 58,220 87,169 End. Bal. End. Bal. Year 2 12/31 Year 2 87,169 X 12/31 27 381 59,788 X 117,990 59,770 117,990 X 117,990X 116.440 87.169 End. Bal. Year 3 12/31 End. Bal. Year 3 59,788X 29,024 30,764 87,169 116,440 End. Bal. Year 4 End. Bat. Year 4 End. Bal. 87,169 End. Bal. 116,440 Rent Revenue Interest Expense Year 1 Year 1 65,000 65,000 12/31 6,780 End. Bal. 6,780 Year 2 End. Bal. Year 2 12/31 65,000 65,000 5,2300 End. Bal. End. Bal. Year 3 12,010 Year 3 65.000 65,000 12/31 3,587 End. Bal. 15,597 Year 4 End. Bal. Year 4 12/31 65,000 65,000 1.847 End. Bal. End. Bal. 17,444 Required information Answer is complete and correct. BROWN CO. Income Statements For the Year Ended December 31 Year 1 Year 2 Year 3 $ 65,000 $ 65,000 $ 65,000 6,780 5,230 3,587 $ 58,220 $ 59,770 $ 61,413 $ Rent revenue Interest expense Net Income Year 4 65,000 1.847 63,153 $ Answer is complete and correct. BROWN CO. Balance Sheets As of December 31 Year 1 Year 2 Year 3 Year 4 Assets Cash IS $ 32,389 113,000 64,778 113,000 97,167 113,000 $ 129,556 113,000 Land Total assets $ 145,389 $ 177.778 $ 210,167 $ 242,556 Liabilities Notes payable $ 87.169 $ 59.788 $ 30,764 $ Stockholders' equity Retained earnings 58,220 117,9906 179,403 242,5566 Total liabilities and stockholders equity $ 145,389 S 177.778 $ 210.167 $ 242,556 Answer is not complete. BROWN CO. Statements of Cash Flows For the Year Ended December 31 Year 1 Year 2 Cash flows from operating activities: Year 3 Year 4 0 0 0 0 Net cash flow from operating activities: Cash flow from investing activities: Paid to purchase land (113,000) (113,000) 0 0 Net cash flow from investing activities Cash flow from financing activities: 0 0 0 0 0 Net cash flow from financing activities Not change in cash Plus: Beginning cash balance Ending cash balance 32,389 32,389 32.389 $ 64,778 32,389 64.778 $ 97,167 32,389 97,167 $ 129,556 $ 32,389 Required information Problem 10-26A Effect of an installment note on financial statements LO 10-1 The following information applies to the questions displayed below.) On January 1 Year 1. Brown Co. borrowed cash from First Bank by issuing a $113,000 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 $32,611 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 $65.000 cash per year. Problem 10-26A Part a Required a. Prepare an amortization schedule for the four year period (Round your answers to the nearest dollar Answer is not complete. Year BROWN CO. Amortization Schedule $113,000, 4-Yr. Term Note, 6% Interest Rate Prin Bal. Prin. Bal. Cash Pay. Applied to Applied to End of on Jan. 1 Dec. 31 Interest Principal Period S 113,000 $ 32,611$ 6.780 IS 25,831 ls 87,169 87 1696 32,611 5.230 27/381 59.788 Year 1 Year 2 Year 3 Year 4 3,587 29.024 30.764 59.788 30,764 32,611 32.611 1.846 30,765
