Exercise $10-6$A $($Algo$)$ Two accounting cycles for bonds issued at face value LO $10-3$

$[$The following information applies to the questions displayed below.$]$

Doyle Company issued $$480,000$ of $10-$year, $7$ percent bonds on January $1,$ Year $2.$ The bonds were issued at face value. Interest is payable in cash on December $31$ of each year. Doyle immediately invested the proceeds from the bond issue in land. The land was leased for an annual $$51,500$ of cash revenue, which was collected on December $31$ of each year, beginning December $31,$ Year $2.$

Exercise $10-6$A $($Algo$)$ Part b

b$.$ Prepare the income statement, balance sheet, and statement of cash flows for Year $2$ and Year $3.$