Question 1:

Question 2:

Required information [The following information applies to the questions displayed below.] On January 1, Year 1, Brown Co. borrowed cash from First Bank by issuing a $115,000 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 $34,721 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 $67,000 cash per year. Required a. Prepare an amortization schedule for the four-year period. (Round your answers to the nearest dollar amount.) BROWN CO. Amortization Schedule $115,000, 4-Yr. Term Note, 8% Interest Rate Cash Pay. Applied to Applied to Dec. 31 Interest Principal Year Prin. Bal. on Jan. 1 Prin. Bal. End of Period Year 1 Year 2 Year 3 Year 4 On January 1, Year 1, Hart Company issued bonds with a face value of $111,000, a stated rate of interest of 13 percent, and a five-year term to maturity. Interest is payable in cash on December 31 of each year. The effective rate of interest was 12 percent at the time the bonds were issued. The bonds sold for $115,001. Hart used the effective interest rate method to amortize the bond premium. (Round your intermediate calculations and final answers to the nearest whole number.) Required a. Prepare an amortization table. Date Cash Payment Interest Expense Premium Amortization Carrying Value 115,001 14,430 13,800 630 114,371 January 1, Year 1 December 31, Year 1 December 31, Year 2 December 31, Year 3 December 31, Year 4 December 31, Year 5 Totals 14,430 13,800 630 b. What is the carrying value that would appear on the Year 4 balance sheet? c. What is the interest expense that would appear on the Year 4 income statement? d. What is the amount of cash outflow for interest that would appear in the operating activities section of the Year 4 statement of cash flows? b. Carrying value on the Year 4 C. Interest expense for Year 4 d. Cash outflow for interest in Year 4 Required information [The following information applies to the questions displayed below.] On January 1, Year 1, Brown Co. borrowed cash from First Bank by issuing a $115,000 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 $34,721 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 $67,000 cash per year. Required a. Prepare an amortization schedule for the four-year period. (Round your answers to the nearest dollar amount.) BROWN CO. Amortization Schedule $115,000, 4-Yr. Term Note, 8% Interest Rate Cash Pay. Applied to Applied to Dec. 31 Interest Principal Year Prin. Bal. on Jan. 1 Prin. Bal. End of Period Year 1 Year 2 Year 3 Year 4 On January 1, Year 1, Hart Company issued bonds with a face value of $111,000, a stated rate of interest of 13 percent, and a five-year term to maturity. Interest is payable in cash on December 31 of each year. The effective rate of interest was 12 percent at the time the bonds were issued. The bonds sold for $115,001. Hart used the effective interest rate method to amortize the bond premium. (Round your intermediate calculations and final answers to the nearest whole number.) Required a. Prepare an amortization table. Date Cash Payment Interest Expense Premium Amortization Carrying Value 115,001 14,430 13,800 630 114,371 January 1, Year 1 December 31, Year 1 December 31, Year 2 December 31, Year 3 December 31, Year 4 December 31, Year 5 Totals 14,430 13,800 630 b. What is the carrying value that would appear on the Year 4 balance sheet? c. What is the interest expense that would appear on the Year 4 income statement? d. What is the amount of cash outflow for interest that would appear in the operating activities section of the Year 4 statement of cash flows? b. Carrying value on the Year 4 C. Interest expense for Year 4 d. Cash outflow for interest in Year 4