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On January 1, Year 1, Brown Co. borrowed cash from First Bank by issuing a $74,000 face value, four-year term note that had an 4
On January 1, Year 1, Brown Co. borrowed cash from First Bank by issuing a $74,000 face value, four-year term note that had an 4 percent annual interest rate. The note is to be repaid by making annual cash payments of $20,386 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 $37,740 cash per year.
Required Prepare an amortization schedule for the four-year period. (Round your answers to the nearest whole dollar amount.)
BROWN CO. Amortization Schedule Year Principal Balance on January 1 Cash Payments December 31 Applied to Interest Applied to Principal Principal Balance End of Period Year 1 Year 2 Year 3 Year 4Step by Step Solution
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