ak Saved Oz Company was started when it issued bonds with a $340,000 face value on January 1, Year 1. The bonds were issued for cash at 96. Oz uses the straight-line method of amortization. They had a 20-year term to maturity and an 6 percent annual interest rate. Interest was payable on December 31 of each year. Oz Company immediately purchased land with the proceeds (cash received) from the bond issue. Oz leased the land for $25,500 cash per year. On January 1, Year 4, the company sold the land for $327,400 cash. Immediately after the sale of the land, Oz redeemed the bonds at 97. Assume that no other accounting events occurred during Year 4. Required Prepare an income statement, statement of changes in equity, balance sheet, and statement of cash flows for the Year 1 Year 2 Year 3, and Year 4 accounting periods. Assume that the company closes its books on December 31 of each year. Prepare the statements using a vertical statements format. (Hint Record each year's transactions in T-accounts prior to preparing the financial statements.) Complete this question by entering your answers in the tabs below. inces Income Statements Statements of Balance Changes Sheets Statements of Cash Flows Assume that the company closes its books on December 31 of each year. Prepare an income statement for the Year 1, Year 2, Year 3, and Year 4 accounting periods. (Enter amounts to be deducted with a minus sign.) OZ COMPANY Income Statements For the Year Ended December 311 Year 1 Year 2 Year 3 Year 4 Lease revenue. Interest expense Operating income $ 25,500 $25,500 $25.500 $ 25,500 $ 25.500 $25,500 Nonoperating income/expense Gain on sale of land 1.000 Loss on bond redemption S 25,500 $ 25,500 $ 25,500 $ 1.000 Income Statements Statements of Changes >