Required information Skip to question [The following information applies to the questions displayed below.] On January 1, Year 1, Brown Company borrowed cash from First Bank by issuing a $107,000 face-value, four-year term note that had an 6 percent annual interest rate. The note is to be repaid by making annual cash payments of $30,879 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 $59,000 cash per year. 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 year in T-accounts before preparing the financial statements.)
	BROWN COMPANY Amortization Schedule $107,000, 4-Year Term Note, 6% Interest Rate Year Principal Balance on January 1 Cash Payment December 31 Applied to Interest Applied to Principal Principal Balance End of Period Year 1 $107,000 $30,879 $6,420 $24,459 $82,541 Year 2 82,541 30,879 4,952 25,927 56,614 Year 3 56,614 30,879 3,397 27,482 29,132 Year 4 29,132 30,879 1,747 29,132 0