Doyle Company issued $420,000 of 10-year, 8 percent bonds on January 1, Year 2. The bonds...

     

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Doyle Company issued $420,000 of 10-year, 8 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 $59,500 of cash revenue, which was collected on December 31 of each year, beginning December 31, Year 2. b. Prepare the income statement, balance sheet, and statement of cash flows for Year 2 and Year 3. Prepare the baiance sheet for Year 2 and Year 3. DOYLE COMPANY Balance Sheet As of December 31 Year 2 Year 3 Assets Total assets Liabilities Total liabilities Stockholders' equity Total stockholders' equity Total liabilitios and stockholders' equity %24 Doyle Company issued $420,000 of 10-year, 8 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 $59,500 of cash revenue, which was collected on December 31 of each year, beginning December 31, Year 2. b. Prepare the income statement, balance sheet, and statement of cash flows for Year 2 and Year 3. Prepare the baiance sheet for Year 2 and Year 3. DOYLE COMPANY Balance Sheet As of December 31 Year 2 Year 3 Assets Total assets Liabilities Total liabilities Stockholders' equity Total stockholders' equity Total liabilitios and stockholders' equity %24

Answer rating: 100% (QA)

Income Statement Year 2 Year 3 Revenue from land lease 59500 59500 Less Interest expense 33600 33600 ... View the full answer