! Required information [The following information applies to the questions displayed below.] On January 1, Year 1, Brown Company borrowed cash from First Bank by issuing a $55,500 face value, four-year term note that had an 5 percent annual interest rate. The note is to be repaid by making annual cash payments of $15,652 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 $28,305 cash per year. b. Organize the information in accounts under an accounting equation. Note: Round your answers to the nearest whole dollar amount. Enter any decreases to account balances with a minus sign. If there is no effect on the Account Titles for Retained Earnings, leave the cell blank. Not all cells will require entry. BROWN COMPANY Effect of Events on the Accounting Equation Year 1, Year 2, Year 3 and Year 4 Stockholders' Assets Liabilities Event Cash Land Notes Payable Equity Retained Earnings Account Titles for Retained Earnings Year 1 1/1 1/1 12/31 12/31 Balance Year 2 Beginning balance 12/31 12/31 Ending balance Year 3 Beginning balance 12/31 12/31 Ending balance Year 4 Beginning balance 12/31 이 0 0+ 0 + 0 12/31 Ending balance 0+ 0= 0+ 0
! Required information [The following information applies to the questions displayed below.] On January 1, Year 1, Brown Company borrowed cash from First Bank by issuing a $55,500 face value, four-year term note that had an 5 percent annual interest rate. The note is to be repaid by making annual cash payments of $15,652 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 $28,305 cash per year. b. Organize the information in accounts under an accounting equation. Note: Round your answers to the nearest whole dollar amount. Enter any decreases to account balances with a minus sign. If there is no effect on the Account Titles for Retained Earnings, leave the cell blank. Not all cells will require entry. BROWN COMPANY Effect of Events on the Accounting Equation Year 1, Year 2, Year 3 and Year 4 Stockholders' Assets Liabilities Event Cash Land Notes Payable Equity Retained Earnings Account Titles for Retained Earnings Year 1 1/1 1/1 12/31 12/31 Balance Year 2 Beginning balance 12/31 12/31 Ending balance Year 3 Beginning balance 12/31 12/31 Ending balance Year 4 Beginning balance 12/31 이 0 0+ 0 + 0 12/31 Ending balance 0+ 0= 0+ 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![!
1/1
1/1
12/31
b. Organize the information in accounts under an accounting equation.
Note: Round your answers to the nearest whole dollar amount. Enter any decreases to account balances with a minus sign. If
there is no effect on the Account Titles for Retained Earnings, leave the cell blank. Not all cells will require entry.
12/31
12/31
Required information
[The following information applies to the questions displayed below.]
12/31
On January 1, Year 1, Brown Company borrowed cash from First Bank by issuing a $55,500 face value, four-year term note
that had an 5 percent annual interest rate. The note is to be repaid by making annual cash payments of $15,652 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 $28,305 cash per year.
Balance
Year 2
Beginning balance
Event
12/31
Year 1
12/31
Ending balance
Year 3
Beginning balance
12/31
12/31
Ending balance
Year 4
Beginning balance
Ending balance
BROWN COMPANY
Effect of Events on the Accounting Equation
Year 1, Year 2, Year 3 and Year 4
Liabilities
Notes
Payable
Cash
Assets
+
+
+
+
0+
+
0+
+
0 +
+
+
0 +
Land
=
0 =
=
=[
0 =
=
0=
=
0 =
+
+
+
0+
+
0+
0 +
0 +
Stockholders'
Equity
Retained
Earnings
0
0
0
0
Account Titles for
Retained Earnings](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F679e8cca-6cc5-491c-b9ef-49448ed093a5%2F701bfa5e-5fc0-4fed-9c92-1d3e6df5048b%2Fv5s47hq_processed.png&w=3840&q=75)
Transcribed Image Text:!
1/1
1/1
12/31
b. Organize the information in accounts under an accounting equation.
Note: Round your answers to the nearest whole dollar amount. Enter any decreases to account balances with a minus sign. If
there is no effect on the Account Titles for Retained Earnings, leave the cell blank. Not all cells will require entry.
12/31
12/31
Required information
[The following information applies to the questions displayed below.]
12/31
On January 1, Year 1, Brown Company borrowed cash from First Bank by issuing a $55,500 face value, four-year term note
that had an 5 percent annual interest rate. The note is to be repaid by making annual cash payments of $15,652 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 $28,305 cash per year.
Balance
Year 2
Beginning balance
Event
12/31
Year 1
12/31
Ending balance
Year 3
Beginning balance
12/31
12/31
Ending balance
Year 4
Beginning balance
Ending balance
BROWN COMPANY
Effect of Events on the Accounting Equation
Year 1, Year 2, Year 3 and Year 4
Liabilities
Notes
Payable
Cash
Assets
+
+
+
+
0+
+
0+
+
0 +
+
+
0 +
Land
=
0 =
=
=[
0 =
=
0=
=
0 =
+
+
+
0+
+
0+
0 +
0 +
Stockholders'
Equity
Retained
Earnings
0
0
0
0
Account Titles for
Retained Earnings
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