chapter 10 question 5

Required information [The following information applies to the questions displayed below] Doyle Company issued $318,000 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 $48,000 of cash revenue, which was collected on December 31 of each year, beginning December 31 , Year 1 . Required a. Prepare the journal entries for these events, and post them to T-accounts for Year 1 and Year 2. 1 Record the issue of bonds payable. 2 Record the purchase of land. 3 Record the receipt of lease revenue for Year 1. 4 Record the interest expense for bonds payable for Year 1. 5 Record the entry to close revenue and expense accounts for Year 1. 6 Record the receipt of lease revenue for Year 2. 7 Record the interest expense for bonds payable for Year 2. 5 Record the entry to close revenue and expense accounts for Year 1. 6 Record the receipt of lease revenue for Year 2. 7 Record the interest expense for bonds payable for Year 2. 8 Record the entry to close revenue and expense accounts for Year 2. Lease Revenue Year 1 End. Bal. Year 2 End. Bal. (Select "cl" for all the closing entries.)