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Doyle Company issued $310,000 of 10-year, 6 percent bonds on January 1, Year 2. The bonds were issued at face value. Interest is payable in

Doyle Company issued $310,000 of 10-year, 6 percent bonds on January 1, Year 2. 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 $52,500 of cash revenue, which was collected on December 31 of each year, beginning December 31, Year 2.

Organize the transaction data in accounts under the accounting equation for Year 2 and Year 3.

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Assets Effect of Events on the Accounting Equation Year 2 and Year 3 Stockholders' Liabilities Equity Bonds Retained Land Payable Earnings + Event Account Titles for Retained Earnings Cash + = + Year 2 1/1 + - + 1/1 + 12/31 + + + + + 12/31 ++ Bal. 0 0 0 0 Year 3 0 + 0 0 + 0 Beg. bal. 12/31 + - + 12/31 + + End. bal. 0 + 0 - 0 + 0

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