On January 1, Year 1, Brown Co. borrowed cash from First Bank by issuing a $65,000 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 $19,625 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 $31,200 cash per year. Prepare an amortization schedule for the four-year period.

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yearprincipal balance jan 1cash payments dec 31applied to interestapplied to principalprincipal balance end of period
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