90.2K

Verified Solution

Link Copied!

On January 1, 2018, Brown Co. borrowed cash from First Bank by issuing a $42,000 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 $12,400 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 $20,580 cash per year. Effect of Events on the Accounting Equation 2018, 2019, 2020 and 2021 Stockholders' Assets = Liabilities + Equity Notes Retained Land Payable Earnings Event Accounts Titles / Retained Earnings Cash 2018 1/1 + + 1/1 + + 12/31 II + + + 12/31 = + Bal. 0 + 0 = 0 + 0 2019 Beg. bal. 12/31 + + + + 12/31 + II + Find ball Ola End. bal. 0 + 0 = 0 + 0 2020 + + Beg. bal. 12/31 = = + + 12/31 + + End. bal. 0 + 0 = 0 + 0 2021 + + Beg. bal. 12/31 + = + 12/31 + II + End. bal. 0 + 0 = 0 + 0 BROWN CO. Income Statement For the Year Ended December 31 2018 2019 2020 2021 2018 2019 2020 2021 Assets Total assets $ 0 $ 0 0 0 Liabilities 0 0 0 0 Total liabilities Stockholders' Equity 0 0 0 Total stockholders' equity Total liabilities and stockholders' equity 0 0 $ 0 $ 0 $ $ 0 Statement of Cash Flows For the Year Ended December 31 2018 2019 2020 2021 Cash flows from operating activities 0 0 0 0 Net cash flow from operating activities Cash flows from investing activities 0 0 0 0 Net cash flows from investing activities Cash flows from financing activities 0 0 0 0 Net cash flow from operating activities Cash flows from investing activities 0 0 0 0 Net cash flows from investing activities Cash flows from financing activities 0 0 0 0 Net cash flows from financing activities Net change in cash 0 0 0 0 Ending cash balance $ 0 $ 0 0 0

Answer & Explanation Solved by verified expert

See Answer