Chapman Company issued $400,000 of 20-year, 6 percent bonds on January 1, 2014. The bonds were issued at face value. Interest is payable in cash on December 31 of each year. Chapman immediately invested the proceeds from the bond issue in land. The land was leased for an annual $60,000 of cash revenue, which was collected on December 31 of each year, beginning December 31, 2014.

1.)

Organize the transaction data in accounts under the accounting equation.

2.) Prepare the income statement for 2014 and 2015.

3.) Prepare the balance sheet for 2014 and 2015.

4.)

Prepare the statement of cash flows for 2014 and 2015