On January 1, 2018, Brown Co. borrowed cash from First Bank by issuing a $63,000 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 $18,599 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 $30,240 cash per year.

A. Prepare an amortization schedule for the four-year period. (Round your answers to the nearest whole dollar amount.)

B. Organize the information in accounts under an accounting equation. (Round your answers to the nearest whole dollar amount. Enter any decreases to account balances with a minus sign. If there is no effect on the Accounts Titles / Retained Earnings, leave the cell blank.)

C. Prepare an income statement, a balance sheet, and a statement of cash flows for each of the four years.

BROWN CO. Amortization Schedule Cash Payments Applied to December 31 Interest Year Principal Balance on January 1 Applied to Principal Principal Balance End of Period 2018 2019 2020 2021 BROWN CO. Effect of Events on the Accounting Equation 2018, 2019, 2020 and 2021 Assets = Liabilities - Stockholders' Equity + Notes Retained Land = Payable Earnings Event Accounts Titles / Retained Earning Cash + + + + Rent revenue Interest expense + + 0+ + + + + + 2018 1/1 1/1 12/31 12/31 Bal. 2019 Beg. bal. 12/31 12/31 End. bal. 2020 Beg. bal. 12/31 12/31 End. bal. 2021 Beg. bal. 12/31 Rent revenue Interest expense + 0+ 0= + + + Rent revenue Interest expense + 0= 0 + 12/31 Rent revenue Interest expense + + End. bal. + + BROWN CO. Income Statement For the Year Ended December 31 2018 2019 2020 2021 Rent revenue Interest expense Net income Balance Sheet As of December 31 2018 2019 2020 2021 Assets Cash Land 0 0 0 0 0 0 $ $ 0 Total assets Liabilities Notes payable 5 0 0 0 Total liabilities Stockholders' Equity Retained earnings 00101 0 0 0 Total stockholders' equity Total liabilities and stockholders' equity Statement of Cash Flows For the Year Ended December 31 2018 2019 2020 2021 Cash flows from operating activities Inflow from rental Outflow for interest T T 0 0 0 0 Net cash flow from operating activities 0 0 0 0 Cash flows from investing activities Outflow to purchase land 100 000 Net cash flows from investing activities 0 Cash flows from financing activities Inflow from loan Outflow to repay loan 1 0 0 0 Net cash flows from financing activities Net change in cash 0 0 0 0 Plus: Beginning cash balance Ending cash balance $ 0 $ 0