6 Oz Company was started when it issued bonds with a $370,000 face value on January 1, Year 1. The bonds were issued for cash at 99. Oz uses the straight-line method of amortization. They had a 20-year term to maturity and an 10 percent annual interest rate. Interest was payable on December 31 of each year. Oz Company immediately purchased land with the proceeds (cash received) from the bond issue. Oz leased the land for $46,250 cash per year. On January 1, Year 4, the company sold the land for $367,300 cash. Immediately after the sale of the land, Oz redeemed the bonds at 100. Assume that no other accounting events occurred during Year 4. 1 points Required Prepare an income statement, statement of changes in equity, balance sheet, and statement of cash flows for the Year 1, Year 2, Year 3, and Year 4 accounting periods. Assume that the company closes its books on December 31 of each year. Prepare the statements using a vertical statements format. (Hint: Record each year's transactions in T-accounts prior to preparing the financial statements.) (Amounts to be deducted should be indicated with a minus sign.) X Answer is not complete. OZ COMPANY Income Statements For the Year Ended December 31 Year 1 Year 2 Year 3 Year 4 Lease revenue $ 46,250 $ 46,250 $ 46,250 $ 0 OOO $ 46.250 $ 46,250 $ 46,250 Interest expense Operating income Non-Operating income/expense Gain on sale of land 0 0 0 1,000 Loss on bond redemption Net income(loss) $ 46,250 $ 46.250 $ 46,250 $ 1,000 Answer is not complete. OZ COMPANY Statement of Changes in Stockholders' Equity For the Year Ended December 31 Year 1 Year 2 Year 3 Year 4 Common stock Beginning retained earnings Net income(loss) Ending retained earnings Total stockholders' equity 0 $ 0 $ 0 $ 0 Answer is not complete. OZ COMPANY Balance Sheets As of December 31 Year 1 Year 2 Year 3 Year 4 Assets Cash Land 367,300 367,300 367,300 0 0 0 0 0 $ 367,300 $ 367,300 $ 367,300 $ 0 Total Assets Liabilities 0 0 0 0 Total Liabilities Stockholders' equity Total liabilities and stockholders' equity $ 0 $ 0 $ 0 $ 0 Answer is not complete. OZ COMPANY Statements of Cash Flows For the Year Ended December 31 Year 1 Year 2 Year 3 Year 4 Cash flows from operating activities: 0 0 0 0 Net cash flow from operating activities: Cash flow from investing activities: 0 0 0 0 Net cash flow from investing activities Cash flow from financing activities 0 0 0 0 Net cash flow from financing activities Net change in cash Ending cash balance $ 0 $ 0 $ 0