Required information Problem 10-26A (Algo) 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 Company borrowed cash from First Bank by issuing a $106,000 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 $31,294 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 $58,000 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 vear in T-accounts before preparing the financial statements.) Prepare T-accounts for each of the four years. Rent revenue is collected in cash at the end of each year. (Select "cl" for all the closing entries. Round your intermediate calculations and final answers to the nearest dollar amounts.)