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@ Chaoter 6Quiz-201 730 x \\ G advantages in simply ti x/ connect × eAccounting

ID: 2573784 • Letter: #

Question

@ Chaoter 6Quiz-201 730 x G advantages in simply ti x/ connect × eAccounting question ICI x C | connect.htrri I https://new cor Down nad music, Secure ::: Apps Ro k marks m- Ru utemame Rlackboard earn The Ricklist Watch O "atm Ma es Onlir HRU Port -Top 100 M ies of A How to Dr etNa e Tool TH2 w r Rase l my it k Chap 7 Probs 26 & 30 G Help Save & Exit Submit Check my work 3 Required information Part 2 of 4 The following information applies to the questions displayed belowj On January 1, 2018, Brown Co. borrowed cash from First Bank by issuing a $70,500 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 $19,882 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 $35,250 cash per year. 10 points cBonk b. Organize the information in accounts under an accounting equation. (Round your answers to the nearest whole dollar amount. References Enter any decreases to account balances with a minus sign. Select "NA" If there is no effect on the "Accounts Titles Retained Earnings") BROWN co Effect of Events on the Accounting Equation 2018, 2019, 2020 and 2021 Stockholders Equity Retained Assets : Llabillties Accounts Titles Retained Earnings Event Notes Cash Land E Payable Earnings 2018 Hill O Type here to search ^d, ING 11/16/2017

Explanation / Answer

BROEN CO.,

Effects of Events on the Accounting Equations

2018, 2019, 2020 and 2021

Event

Assets

Liabilities

+

Stockholder's Equity

Accounts Titles / Retained Earnings

Cash

+

Land

=

Notes Payable

Retained Earnings

2018

1/1

$70,500

$70,500

1/1

-$70,500

$70,500

12/31

$35,250

$35,250

rent rev.

12/31

-$19,882

-$16,357

$31,725

-$3,525

Interest

Bal

$15,368

$70,500

$54,143

$31,725

$31,725

2019

Beg. Bal.

$15,368

$70,500

$54,143

$31,725

12/31

$35,250

$35,250

rent rev.

12/31

-$19,882

-$17,175

$32,543

-$2,707

Interest

End Bal

$30,736

$70,500

$36,968

$64,268

2020

Beg. Bal.

$30,736

$70,500

$36,968

$64,268

12/31

$35,250

$35,250

rent rev.

12/31

-$19,882

-$18,034

$33,402

-$1,848

Interest

End Bal

$46,104

$70,500

$18,935

$97,669

2021

Beg. Bal.

$46,104

$70,500

$18,935

$97,669

12/31

$35,250

$35,250

rent rev.

12/31

-$19,882

-$18,935

$34,303

-$947

Interest

End Bal

$61,472

$70,500

-$1

$1,31,973

BROEN CO.,

Effects of Events on the Accounting Equations

2018, 2019, 2020 and 2021

Event

Assets

Liabilities

+

Stockholder's Equity

Accounts Titles / Retained Earnings

Cash

+

Land

=

Notes Payable

Retained Earnings

2018

1/1

$70,500

$70,500

1/1

-$70,500

$70,500

12/31

$35,250

$35,250

rent rev.

12/31

-$19,882

-$16,357

$31,725

-$3,525

Interest

Bal

$15,368

$70,500

$54,143

$31,725

$31,725

2019

Beg. Bal.

$15,368

$70,500

$54,143

$31,725

12/31

$35,250

$35,250

rent rev.

12/31

-$19,882

-$17,175

$32,543

-$2,707

Interest

End Bal

$30,736

$70,500

$36,968

$64,268

2020

Beg. Bal.

$30,736

$70,500

$36,968

$64,268

12/31

$35,250

$35,250

rent rev.

12/31

-$19,882

-$18,034

$33,402

-$1,848

Interest

End Bal

$46,104

$70,500

$18,935

$97,669

2021

Beg. Bal.

$46,104

$70,500

$18,935

$97,669

12/31

$35,250

$35,250

rent rev.

12/31

-$19,882

-$18,935

$34,303

-$947

Interest

End Bal

$61,472

$70,500

-$1

$1,31,973

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