80.2K

Verified Solution

Link Copied!

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

Skip to question

[The following information applies to the questions displayed below.] Doyle Company issued $460,000 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 $56,500 of cash revenue, which was collected on December 31 of each year, beginning December 31, Year 2.

Exercise 10-6A Part a - 2 Required a. Organize the transaction data in accounts under the accounting equation for Year 2 and Year 3. (Enter any decreases to account balances with a minus sign. Not all cells in the "Accounts Titles for Retained Earnings" column may require an input - leave cells blank if there is no corresponding input needed.) DOYLE COMPANY Effect of Events on the Accounting Equation Year 2 and Year 3 Assets Liabilities Stockholders Equity Bonds Cash Land Retained Payable Earnings Event Accounts Tities for Retained Earnings Year 2 1/1 12/31 12/31 Bol. Year 3 Beg bal 12/31 12/31 End, bal Exercise 10-6A Part b 2 b. Prepare the income statement, balance sheet, and statement of cash flows for Year 2 and Year 3. Complete this question by entering your answers in the tabs below. Req B Inc Stmt Req B Bal Sheet Req B Stmt Cash Flows Prepare the income statement for Year 2 and Year 3. DOYLE COMPANY Income Statements For the Year Ended December 31 Year 2 Year 3 Robine Sim Req B Bal Sheet > Req B Inc Stmt Reg B Bal Sheet Reg B Stmt Cash Flows Prepare the balance sheet for Year 2 and Year 3. DOYLE COMPANY Balance Shoot As of December 31 + Year 2 Year 3 Assets Total assets Liabilities Total liabilities Stockholders' equity Total stockholders' equity Total liabilities and stockholders' equity DOYLE COMPANY Statement of Cash Flows For the Year Ended December 31 Year 2 Cash flows from operating activities Year 3 Net cash flow from operating activities Cash flows from investing activities Net cash flows from investing activities Cash flows from financing activities Net cash flows from financing activities Net change in cash Ending cash balance

Answer & Explanation Solved by verified expert

See Answer