On January 1, Year 1, Brown Co. borrowed cash from First Bank by issuing a $105,000 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 $30,302 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 $57,000 cash per year.

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 $105,000 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 $30,302 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 $57,000 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 amount.) BROWN CO. Amortization Schedule $105,000, 4-Yr. Term Note, 6% Interest Rate Applied to Applied to Dec. 31 Interest Principal Cash Pay Year Prin. Bal. on Jan. 1 Prin. Bal. End of Period Year 1 Year 2 Year 3 Year 4 Lalo