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Required information Problem 1 0 - 2 6 A ( Algo ) Effect of an installment note on financial statements LO 1 0 - 1

Required information
Problem 10-26A (Algo) Effect of an installment note on financial statements LO 10-1
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On January 1, Year 1, Brown Company borrowed cash from First Bank by issuing a $101,000 face-value, four-year term note that had an 7 percent annual interest rate. The note is to be repaid by making annual cash payments of $29,818 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 $53,000 cash per year.
Problem 10-26A (Algo) Part b
b. Prepare an income statement, 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. (Hint: Record the transactions for each year in T-accounts before preparing the financial statements.)Answer is not complete.
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Req B2
Req B3
Req B4
Prepare a balance sheet for each of the four years. (Round your intermediate calculations and final answers to the nearest dollar amounts.)
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