On January 1, Year 1, Brown Company borrowed cash from First Bank by issuing a $108,000 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 $31,168 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 $60,000 cash per year.

b. Prepare T-Accounts for each of the 4 years. Also Prepare a balance sheet, and statement of cash flows for each of the four years. Rent revenue is collected in cash at the end of each year.

Not providing T-Accounts, Balance Sheet, or Statement of Cashflows will result in a DISLIKE rating.