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On January $1,$ Year $1,$ Brown Co$.$ borrowed cash from First Bank by issuing a $$43,500$ face value, four$-$year term note that had an $5$ percent annual interest rate. The note is to be repaid by making annual cash payments of $$12,268$ 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 $$20,445$ cash per year.

b$.$ Organize the information in accounts under an accounting equation. $($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 CO$.$

Effect of Events on the Accounting Equation

Year $1,$ Year $2,$ Year $3$ and Year $4$

$\backslash$table$[[$Event$,$Assets,$=,\backslash$table$[[$Liabilities$],[\backslash$table$[[$Notes$],[$Payable$]]]],\backslash$table$[[+],[+],[+]],\backslash$table$[[\backslash$table$[[$Stockholders$\text{'}],[$Equity$]]],[$Retained$],[$Earnings$]],\backslash$table$[[$Account Titles for$],[$Retained Earnings$]]],[$Cash$,+,$Land$],[$Year $1],[\frac{1}{1},,+,,=,,+,,],[\frac{1}{1},,+,,=,,+,,],[\frac{12}{31},,+,,=,,+,,],[\frac{12}{31},,+,,=,,+,,],[$Bal$.,,+,,=,,+,,],[$Year $2],[$Beg$.$ bal.,,$+,,=,,+,,],[\frac{12}{31},,+,,=,,+,,],[\frac{12}{31},,+,,=,,+,,],[$End$.$ bal.,,$+,,=,,+,,],[$Year $3,-,15,,,,[.,,],[$Beg$.$ bal.,,$+,,=,,+,,],[\frac{12}{31},,+,,=,,+,,],[\frac{12}{31},,+,,=,,+,,],[$End$.$ bal.,,$+,,=,,+,,],[$Year $4],[$Beg$,$ bal.,,$+,,=,,+,,]]$

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