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 $112,000 face-value, four- year term note that had an 8 percent annual interest rate. The note is to be repaid by making annual cash payments of $33,815 that include both interest and principal on December 31 of each year. Brown year. used the proceeds from the loan to purchase land that generated rental revenues of $64,000 cash per Problem 10-26A Part a Required a. Prepare an amortization schedule for the four-year period. (Round your answers to the nearest dollar amo BROWN co. Amortization Schedule $112,000, 4-Yr Term Note, 8% Interest Rate Prin. Bal Cash Pay.Applied to Applied to Prin. Bal. ear Required a. Prepare an amortization schedule for the four-year period. (Round your answers to the nearest dol BROWN co Amortization Schedule $112,000, 4-Yr. Term Note, 8% Interest Rate Prin. Bal.Cash Pay.Applied to Dec. 31 Applied to Prin. Bal. Year on Jan. 1 Interest Principal End of Period Year 1 Year 2 Year 3 Year 4 112,00033,815 33,815 33,815 33,815 8,960 S 24,855$ 6.972 4,824 2,505 S$ 87,145 60,302 31,311 26,843 28,991 31,310 87,145 60,302 31,311 Land Cash Year 1 Year 1 End. Bal. End. Bal. Year 2 End. Bal Year 3 End. Bal. Year 4 Required information End. Bal. Year 3 End. Bal. Year 4 End. Bal. Retained Earnings Notes Payable Year 1 Year 1 Required information Rent Revenue Interest Expense Year 1 Year 1 End. Bal End. Ba Year 2 Year 2 End. Bal. Year 3 End. Bal Year 3 End. Bal End. Bal Required information End. Bal Year 3 End. Bal. ear 3 End. Bal Year 4 End. Bal Year 4 Bal. End. Bal End. Required information BROWN CO. Income Statements For the Year Ended December 31 Year 1 Year 2 Year 3 Year 4 Balance Sheets As of December 31 Year 1 Year 2 Year 3 Year 4 Assets Total assets Liabilities Stockholders equity oblem for Points G Saved Help Required information Total assets Liabilities Stockholders' equity Total liabilities and stockholders' equity Required information 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 Net cash flow from operating activities Cash flow from investing activities: Net cash flow from investing activities Cash flow from financing activities: Required information Net cash flow from investing activities Cash flow from financing activities: 01 Net cash flow from financing activities Net change in cash Ending cash balance