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 $104,000 face-value, four-year term note that had an 8 percent annual Interest rate. The note Is to be repald by making annual cash payments of $31,400 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 $56,000 cash per year. roblem 10-26A Part a equired . Prepare an amortization schedule for the four-year period. (Round your answers to the nearest dollar amount.) BROWN co Amortization Schedule $104,000, 4-Yr. Term Note, 8% Interest Rate Prin. Bal on Jan. 1 Cash Pay Dec. 31 Applied to Applied to Prin. Bal. Year Year 1 Year 2 Year 3 Year 4 Interest al End of Period Cash Land Year 1 Year 1 End. Bal. End. Ball Year 2 12/31 cl End. Ball Year 3 End. Ball Year 4 End. Ball Notes Payable Retained Earnings Year 1 Year 1 End. Bal End. Bal Year 2 Year 2 End. Bal End. Bal Year 3 Year 3 End. Bal End. Bal ear 4 ear 4 End. Bal End. Bal Rent Revenue Interest Expense Year 1 Year 1 End. Bal End. Bal Year 2 ear 2 End. Bal End. Bal Year 3 Year 3 End. Bal End. Bal Year 4 Year 4 End. Bal End. Bal BROWN CO Income Statements For the Year Ended December 31 Year 1 Year 2 Year 3 Year 4 BROWN co Balance Sheets As of December 31 Year 1 Year 2 Year 3 Year 4 Assets Total assets Liabilities Stockholders equity 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 Net cash flow from operating activities: Cash flow from investing activities: Net cash flow from investing activities Cash flow from financing activities Net cash flow from financing activities Net change in cash Ending cash balance