70.2K

Verified Solution

Link Copied!

Required information [The following information applies to the questions displayed below.) Doyle Company issued $300,000 of 10-year, 5 percent bonds on January 1, Year 1. 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 $51,000 of cash revenue, which was collected on December 31 of each year. beginning December 31, Year 1. Required a. Organize the transaction data in accounts under the accounting equation for Year 1 and Year 2. (Enter any decreases to account balances with a minus sign. If there is no effect on the Account Titles for Retained Earnings, leave the cell blank. Not all cells will require entry.) DOYLE COMPANY Effect of Events on the Accounting Equation Year 1 and Year 2 Assets = Liabilities Stockholders Equity Cash Land Bonds Retained Payable Earnings Event Account Titles for Retained Earnings Year 1 1/1 1/1 12/31 12/31 Bal. Year 2 Beg. bal. 12/31 12/31 End, bal 0 0 0 0 ++++ 01 0 0 Required Information [The following information applies to the questions displayed below.) Doyle Company issued $300,000 of 10-year, 5 percent bonds on January 1, Year 1. 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 $51,000 of cash revenue, which was collected on December 31 of each year, beginning December 31, Year 1. b. Prepare the income statement, balance sheet, and statement of cash flows for Year 1 and Year 2. Complete this question by entering your answers in the tabs below. Reg B Inc Stmt Req B Bal Sheet Req B Stmt Cash Flows Prepare the income statement for Year 1 and Year 2. DOYLE COMPANY Income Statements For the Year Ended December 31 Year 1 Year 2 Rena Inc Stom Req B Bal Sheet > Doyle Company issued $300,000 of 10-year, 5 percent bonds on January 1, Year 1. 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 $51,000 of cash revenue, which was collected on December 31 of each year, beginning December 31, Year 1 b. Prepare the income statement, balance sheet, and statement of cash flows for Year 1 and Year 2. Complete this question by entering your answers in the tabs below. Reg B Inc Stmt Req B Bal Sheet Req B Stmt Cash Flows Prepare the balance sheet for Year 1 and Year 2 DOYLE COMPANY Balance Sheet As of December 31 Year 1 Year 2 Assets $ ols Total assets Liabilities 0 0 Total liabilities Stockholders' equity Total stockholders' equity Totallibilities and stockholders' equity OO 0 0 ols [The following information applies to the questions displayed below.) Doyle Company issued $300,000 of 10-year, 5 percent bonds on January 1, Year 1. The bonds were issued at foce 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 $51,000 of cash revenue, which was collected on December 31 of each year, beginning December 31, Year 1. b. Prepare the income statement, balance sheet, and statement of cash flows for Year 1 and Year 2. Complete this question by entering your answers in the tabs below. Reg B Inc Reg B Bal Reg B Stmt Stmt Sheet Cash Flows Prepare the statement of cash flows for Year 1 and Year 2. (Cash outflows should be indicated with a minus sign.) DOYLE COMPANY Statement of Cash Flows For the Year Ended December 31 Year 1 Year 2 Cash flows from operating activities 0 0 Net cash flow from operating activities Cash flows from investing activities 0 0 Net cash flows from investing activities Cash flows from financing activities 0 0 Net cash flows from financing activities Net change in cash 0 0 $ 0 Ending cash balance 0 $

Answer & Explanation Solved by verified expert

See Answer