Problem 7-30 Effect of an installment note on financial statements LO 7-5

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On January 1, 2018, Brown Co. borrowed cash from First Bank by issuing a $66,500 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 $20,078 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 $30,590 cash per year.

Problem 7-30 Part b

2. 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 Accounts Titles / Retained Earnings, leave the cell blank.)

BROWN CO.
Effect of Events on the Accounting Equation
2018, 2019, 2020 and 2021
Event	Assets			=	Liabilities	+	Stockholders' Equity	Accounts Titles / Retained Earnings
	Cash	+	Land	=	Notes Payable	+	Retained Earnings
2018
1/1		+		=		+
1/1		+		=		+
12/31		+		=		+
12/31		+		=		+
Bal.		+		=		+
2019
Beg. bal.		+		=		+
12/31		+		=		+
12/31		+		=		+
End. bal.		+		=		+
2020
Beg. bal.		+		=		+
12/31		+		=		+
12/31		+		=		+
End. bal.		+		=		+
2021
Beg. bal.		+		=		+
12/31		+		=		+
12/31		+		=		+
End. bal.		+		=		+