Vole Company was started when it issued bonds with a \(\$ 400,000\) face value on January 1, 2011. The bonds were issued for cash at 96 . They had a 20 -year term to maturity and an 8 percent annual interest rate. Interest was payable on December 31 of each year. Vole Company immediately purchased land with the proceeds (cash received) from the bond issue. Vole leased the land for \(\$ 50,000\) cash per year. On January 1,2014 , the company sold the land for \(\$ 400,000\) cash. Immediately after the sale of the land, Vole redeemed the bonds at 98 . Assume that no other accounting events occurred during 2014.

Required
Prepare an income statement, statement of changes in equity, balance sheet, and statement of cash flows for the 2011, 2012, 2013, and 2014 accounting periods. Assume that the company closes its books on December 31 of each year. Prepare the statements using a vertical statements format. (Record each year's transactions in T-accounts prior to preparing the financial statements.)