On January 1, Year 1, Brown Co. borrowed cash from First Bank by issuing a $111,000 face-value, four-year term note that
Posted: Tue Jul 05, 2022 11:48 am
On January 1, Year 1, Brown Co. borrowed cash from First Bank byissuing a $111,000 face-value, four-year term note that had an 8percent annual interest rate. The note is to be repaid by makingannual cash payments of $33,513 that include both interest andprincipal on December 31 of each year. Brown used the proceeds fromthe loan to purchase land that generated rental revenues of $63,000cash per year.
b. Prepare an income statement, balance sheet, and statement ofcash flows for each of the four years. (Round your answers to thenearest dollar amount. Statement of Cash Flows only: Items to bededucted must be indicated with a minus sign.)
b. Prepare an income statement, balance sheet, and statement ofcash flows for each of the four years. (Round your answers to thenearest dollar amount. Statement of Cash Flows only: Items to bededucted must be indicated with a minus sign.)