2 Required information (The following information applies to the questions displayed below.) Doyle Company issued $370,000 of 10-year, 6 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 $59.500 of cash revenue, which was collected on December 31 of each year, beginning December 31, Year 1. nt DOYLE COMPANY Effect of Events on the Accounting Equation Year 1 and Year 2 Stockholders Assets = Liabilities + Equity Bonds Retained Cash Land Payable Earnings Event Account Titles for Retained Earnings Il Year 1 1/1 1/1 12/31 +++ ++ HIIHII + + + + + 12/31 Bal. 0 01 + 0 Year 2 + Beg. bal. 12/31 12/31 End, bal ++ 1111111 + + + + 0 + 0 = 01 + 0 Prepare the income statement for Year 1 and Year 2. DOYLE COMPANY Income Statements For the Year Ended December 31 Year 1 Year 2 Prepare the balance sheet for Year 1 and Year 2. DOYLE COMPANY Balance Sheet As of December 31 Year 1 Year 2 Assets Total assets $ 0 $ 0 Liabilities Total liabilities 0 0 o Stockholders' equity Total stockholders' equity Total liabilities and stockholders' equity 0 0 $ 0 $ 0 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 Ending cash balance $ 0 $ 0