Required information The following information applies to the questions displaye

Question

Required information The following information applies to the questions displayed below B3pe cent anual interest rate The On January 1, 2018, Brown Co. borrowed cash from First Bank by issuing a $100,000 face value, four-year term note that had an 8 percent annual interest rate. The note is to be repaid by making annual cash payments of $30,192 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 $52,000 cash per year. ised the psfrom the loan to purchase land that Required a. Prepare an amortization schedule for the four-year period. (Round your answers to the nearest whole dollar amount.) BROWN co Amortization Schedule Principal Year Balance on Payments Applied to Applied to Principal 2018 2019 2020 2021 Cash Interest | Principal |-Of Period January 1 December 31

Explanation / Answer

Year principal balance Cash payments Interest Principal Principal balance at end 2018 100000 30192 8000 22192 77808 2019 77808 30192 6225 23967 53841 2020 53841 30192 4307 25885 27956 2021 27956 30192 2236 27956 0

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