Doyle Company issued $440,000 of 10-year, 8 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 $54,000 of cash revenue, which was collected on December 31 of each year, beginning December 31, Year 1

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