Oz Company was started when it issued bonds with a $170,000 face value on January 1, 2016. The bonds were issued for cash at 99. Oz uses the straight-line method of amortization. They had a 20-year term to maturity and an 5 percent annual interest rate. Interest was payable on December 31 of each year. Oz Company immediately purchased land with the proceeds (cash received) from the bond issue. Oz leased the land for $10,625 cash per year. On January 1, 2019, the company sold the land for $169,300 cash. Immediately after the sale of the land, Oz redeemed the bonds at 100. Assume that no other accounting events occurred during 2019.

Required

Prepare an income statement, statement of changes in equity, balance sheet, and statement of cash flows for the 2016, 2017, 2018, and 2019 accounting periods. Assume that the company closes its books on December 31 of each year. Prepare the statements using a vertical statements format. (Hint: Record each years transactions in T-accounts prior to preparing the financial statements.) (Amounts to be deducted should be indicated with minus sign.)

OZ COMPANY
Income Statements
For the Year Ended December 31
	2016	2017	2018	2019
Lease revenue	$10,625	$10,625	$10,625	$0
Interest expense
Operating income	$10,625	$10,625	$10,625
Non-Operating income/expense
Loss on bond redemption
Gain on sale of land
Net income(loss)	$10,625	$10,625	$10,625	$0

OZ COMPANY
Statement of Changes in Stockholders Equity
For the Year Ended December 31
	2016	2017	2018	2019
Common stock
Net income(loss)
Total stockholders equity

OZ COMPANY
Balance Sheets
As of December 31
	2016	2017	2018	2019
Assets
Total Assets
Liabilities
Total Liabilities
Stockholders equity
Total liabilities and stockholders equity

OZ COMPANY
Statements of Cash Flows
For the Year Ended December 31
	2016	2017	2018	2019
Cash flows from operating activities:
Net cash flow from operating activities:
Cash flow from investing activities:
Net cash flow from investing activities
Cash flow from financing acttivities
Net cash flow from financing activities
Net change in cash
Ending cash balance