On January 1, Year 1, Brown Co. borrowed cash from First Bank byissuing a $64,500 face value, four-year term note that had an 9percent annual interest rate. The note is to be repaid by makingannual cash payments of $19,909 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 $34,185cash per year.
c.Prepare an income statement, a balance sheet, and a statementof cash flows for each of the four years.
Complete this question by entering your answers in thetabs below.
- Req C Inc Stmt
- Req C Bal Sheet
- Req C Stmt of Cash Flows
Prepare the income statement for each of the four years.
