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Doyle Company issued $391,000 of 10-year, 5 percent bonds on January 1, Year 1. The bonds were issued at face value. Interest is payable in
Doyle Company issued $391,000 of 10-year, 5 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 $48,500 of cash revenue, which was collected on December 31 of each year, beginning December 31, Year 1. DOYLE COMPANY Income Statements For the Year Ended December 31 Year 1 Year 2 DOYLE COMPANY Balance Sheets For the Year Ended December 31 Year 1 Year 2 Assets Total assets Liabilities Stockholder's equity Total stockholder's equity Total liabilities and stockholders' equity DOYLE COMPANY Statements of Cash Flows For the Year Ended December 31 Year 1 Year 2 Cash flows from operating activities: Net cash flow from operating activities Cash flows from investing activities: Cash flows from financing activities: Net change in cash Ending cash balance
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