On January 1, Year 1, Brown Co borrowed cash from First Bank by issuing a $101,000 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 $29,818 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 $53,000 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 $101,000, 4 Yr Term Note, 7 Interest Rate Year Prin Bal on Jan 1 Cash Pay Dec 31 Applied to Interest Applied to Principal Prin Bal End of Period Year 1 Year 2 Year 3 Year 4 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 )

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On January 1, Year 1, Brown Co. borrowed cash from First Bank by issuing a $101,000 face-value, four-year term note that had an 7 percent

On January 1, Year 1, Brown Co. borrowed cash from First Bank by issuing a $101,000 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 $29,818 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 $53,000 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
$101,000, 4-Yr. Term Note, 7% Interest Rate
Year	Prin. Bal. on Jan. 1	Cash Pay. Dec. 31	Applied to Interest	Applied to Principal	Prin. Bal. End of Period
Year 1
Year 2
Year 3
Year 4

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.)