2. Binghamton Rental Company (BRC) was started in Year 1. BRC experienced the following events over the next five years. Year 1 1. On January 1, Year 1, BRC issued bonds with a face value of $50,000. The bonds were issued at face value. They had a five-year term and a 12% stated rate of interest. 2. BRC used the $50,000 cash proceeds from the bond issue to purchase land. 3. BRC entered into a five-year land lease agreement that produced lease revenue of $8,000 cash per year. 4. BRC recognized bond interest expense. The bond agreement stipulated that interest would be paid in cash annually on December 31 of each year with the first payment due December 31, Year 1. Years 2-5 1. Recognized $8,000 of lease revenue. 2. Recognized interest expense based on a 12% annual interest rate. 3. On December 31, Year 5, BRC sold the land for $50,000 cash 4. On December 31, Year 5. BRC paid the principal amount due on the bond liability. Required: a. Prepare income statements, and a balance sheets for years 1 thru 5 Hint: It may help to record the events in a horizontal financial statements model first. 2. Binghamton Rental Company (BRC) was started in Year 1. BRC experienced the following events over the next five years. Year 1 1. On January 1, Year 1, BRC issued bonds with a face value of $50,000. The bonds were issued at face value. They had a five-year term and a 12% stated rate of interest. 2. BRC used the $50,000 cash proceeds from the bond issue to purchase land. 3. BRC entered into a five-year land lease agreement that produced lease revenue of $8,000 cash per year. 4. BRC recognized bond interest expense. The bond agreement stipulated that interest would be paid in cash annually on December 31 of each year with the first payment due December 31, Year 1. Years 2-5 1. Recognized $8,000 of lease revenue. 2. Recognized interest expense based on a 12% annual interest rate. 3. On December 31, Year 5, BRC sold the land for $50,000 cash 4. On December 31, Year 5. BRC paid the principal amount due on the bond liability. Required: a. Prepare income statements, and a balance sheets for years 1 thru 5 Hint: It may help to record the events in a horizontal financial statements model first