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Problem $10-26$A $($Algo$)$ Effect of an installment note on financial statements LO $10-1$

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On January $1,$ Year $1,$ Brown Company borrowed cash from First Bank by issuing a $$101,000$ face$-$value, four$-$year term note that had an $7$ percent annual interest rate. The note is to be repaid by making annual cash payments of $$29,818$ 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 $$53,000$ cash per year.

Problem $10-26$A $($Algo$)$ Part b

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.$)$Answer is not complete.

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Req B$2$

Req B$3$

Req B$4$

Prepare a balance sheet for each of the four years. $($Round your intermediate calculations and final answers to the nearest dollar amounts.$)$