5 Required information [The following information applies to the questions displayed below.] Part 1 of 2 Doyle Company issued $500,000 of 10-year, 7 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 $125,000 of cash revenue, which was collected on December 31 of each year, beginning December 31, Year 1. 8.75/10 points awarded Scored Required a. Prepare the journal entries for these events, and post them to T-accounts for Year 1 and Year 2. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Date General Journal Debit Credit 1 Jan 01 Cash 500,000 Bonds payable 500,000 2 Jan 01 Land 500,000 Cash 500,000 3 Dec 31 Cash 125,000 Lease revenue 125,000 4 Dec 31 35,000 Interest expense Cash 35,000 5 Dec 31 Lease revenue 125,000 Retained earnings 125,000 X X Required information 5 5 Dec 31 Lease revenue 125,000 Retained earnings 125,000 X X Part 1 of 2 6 Dec 31 Cash 125,000 Lease revenue 125,000 8.75/10 points awarded 7 Dec 31 35,000 Interest expense Cash Scored 35,000 0 00 8 Dec 31 35,000 X Retained earnings Interest expense 35,000 (Select "cl" for all the closing entries.) Cash Land Year 1 Year 1 1/1 1/1 500,000 500,000 125,000 500,000 35,000 1/1 12/31 12/31 ed End. Bal. 90,000 End. Bal. 500,000 Year 2 12/31 125,000 35,000 12/31 Retained Earnings Year 1 cl 35,000 125,000 cl End. Bal. 180,000 Bonds Payable 90,000 End. Bal. Year 2 Year 1 500,000 1/1 cl 35,000 125,000 cl End. Bal. 500,000 End. Bal. 180,000 Lease Revenue Interest Expense Year 1 Year 1 cl 125,000 125,000 12/31 12/31 35,000 35,000 cl End. Bal. End. Bal. Vaar Voorn