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please set it up like mine so i can easily fill in and only answer if you are sure:) Required information Problem 10-26A Effect of

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please set it up like mine so i can easily fill in and only answer if you are sure:) image text in transcribed
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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 $113,000 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 $32,611 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 $65,000 cash per year. Problem 10-26A Part b 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.) Cash Land Year 1 Year 1 End. Bu End. Bal Year 2 End. Bol Years End Bal Your 4 End. Bal Notes Payable Retained Earnings Year 1 Year 1 Required information Retained Earnings Notes Payable Year 1 Year 1 End. Bal Year 2 End. Bal Yoar 2 End. Bal Year 3 End, Bal Year 3 End. Bal. Year 4 End. Bal. Year 4 End, Bal End. Bal. Interest Expense Rent Revenue Year 1 Year 1 End. Bal. End. Bal Year 2 Year 2 End. Bal. Year 3 End, Bal. Yoar 3 End. Bal. Year 4 End. Bal. Year 4 End. Bal. End. Bal. BROWN CO. Income Statements For the Year Ended December 31 Year 1 Year 2 Year 3 Year 4 $ 0 ols $ 0 0 $ BROWN CO. Balance Sheets As of December 31 Year 1 Year 2 Year 3 Year 4 Assets 0 $ $ ols 0 $ Total assets Liabilities Stockholders' equity $ 0 $ 0 0 $ Total liabilities and stockholders' equity BROWN CO. Statements of Cash Flows For the Year Ended December 31 Year 1 Year 2 Year 3 Year 4 Cash flows from operating activities: 0 Net cash flow from operating activities: Cash flow from investing activities: Net cash flow from investing activities Cash flow from financing activities: 0 Net cash flow from financing activities Net change in cash $ Ending cash balance

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