Exercise 10-6B Two accounting gcles for bonds issued at face value Pluto Company issued $300,000 of 20-year, 6 percent bonds on January 1, Year L. The bonds were isveed at face value. Interest is payable in cash on December 31 of each year. Pluto immediately invested the proceeds from the bond issue in land. The land was leased for an annual $50,000 of cash revenue. which was collected on December 31 of each year, beginning December 31 , Year L. Required a. Onganize the transaction data in accounts under the accounting equation for Year 1 and Year 2 . b. Prepare the income statement, balance sheet, and statement of cash flows for Year I and Year 2 . EXERCISE 10-6B a. b. Pluto Company Financial Statements For the Year Ended December 31 Income Statements Lease Revenue Interest Expense Net Income \begin{tabular}{|l|} \hline Assets \\ \hline Cash \\ Land \\ Total Assets \\ Liabilities \\ Bonds Payable \\ Stockholders' Equity \\ Common Stock \\ Retained Earnings \\ Total Stockholders' Equity \\ \hline Total Liab. and Stockholders' Equity \\ \hline \end{tabular} Statements of Cash Flows Cash Flows From Operating Activities: Receipts from Revenue Paid for Interest Net Cash Flow from Operating Act. Cash Flows From Investing Activities: Paid to Purchase Land Cash Flows From Financing Activities: Proceeds from Bond Issue Net Change in Cash Plus: Beginning Cash Balance Ending Cash Balance