is complete and correct. BROWN COMPANY Amortization Schedule $119,000, 4-Year Term Note, 7% Interest Rate Principal Balance Principal Cash Year Payment on January Applied to Interest Applied to Balance Principal End of December 31 1 Period Year 1 $ 119,000 $ 35,132 $ 8,330 $ 26,802 $ 92,198 Year 2 92,198 35,132 6,454 28,678 63,520 Year 3 63,520 35,132 4,446 30,686 32,834 Year 4 32,834 35,132 2,298 32,834 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 $119,000 face-value, four- year term note that had an 7 percent annual interest rate. The note is to be repaid by making annual cash payments of $35,132 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 $71,000 cash per year. b. Prepare an income statement and balance sheetfor 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 Year 1 1/1 119,000 35,132 12/31 Ending Balance 83,868 Year 2 1/1 92,198 35,132 12/31 Ending Balance 140,934 Year 3 1/1 63,520 35,132 12/31 Ending Balance 169,322 Year 4 1/1 32,834 35,132 12/31 Ending Balance 167,024 Year 1 Land 12/31 71,000 Ending Balance 71,000 Notes Payable Retained Earnings Year 1 Year 1 119,000 1/1 Ending Balance Year 2 119,000 92,198 1/1 Ending Balance Year 2 Ending Balance 211,198 Year 3 63,520 1/1 Ending Balance 274,718 Year 4 Ending Balance Year 3 32,834 1/1 Ending Balance Year 4 Ending Balance 307,552 Ending Balance Rent Revenue Year 1 Year 1 Ending Balance Year 2 Ending Balance Year 3 Ending Balance Year 4 Ending Balance Year 2 Interest Expense 8,330 12/31 8,330 6,454 12/31 Ending Balance 14,784 Year 3 Ending Balance Year 4 4,446 12/31 19,230 2,298 12/31 Ending Balance Ending Balance 21,528 Req B1 Req B2 Req B3 Prepare an income statement for each of the four years. (Round your intermediate calculations and final answers to the nearest dollar amounts.) BROWN COMPANY Income Statements For the Year Ended December 31 Year 1 Year 2 Year 3 Year 4 $ 0 $ 0 $ 0 $ 0 Req B1 Req B3 > Prepare a balance sheet for each of the four years. (Round your intermediate calculations and final answers to the nearest dollar amounts.) Assets Total assets Liabilities Stockholders' equity Total liabilities and stockholders' equity BROWN COMPANY Balance Sheets As of December 31 Year 1 Year 2 Year 3 Year 4 0 $ 0 $ 0 0 0 $ 0