On January 1, 2018, Brown Co. borrowed cash from First Bank by issuing a $49,500 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 $14,285 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 $22,275 cash per year.

BROWN CO.
Balance Sheet
As of December 31
	2018	2019	2020	2021
Assets
Cash
Land
Total assets	$0	$0	0	0
Liabilities
Notes payable
Total liabilities	0	0	0	0
Stockholders' Equity
Retained earnings
Accounts receivable
Total stockholders' equity	0	0	0	0
Total liabilities and stockholders' equity	$0	$0	$0	$0