Required information Exercise 10-6A (Algo) Two accounting cycles for bonds issued at face value LO 10-3 [The following information applies to the questions displayed below] Doyle Company issued $350,000 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 $58,000 of cash revenue, which was collected on December 31 of each year. beginning December 31 , Year 2 . Exercise 10.6A (Algo) Part b DOYLE COMPANY Income Statements For the Year Ended December 31 DOYLE COMPANY Balance Sheet \{ As of December 31 Exercise 10-14A (Algo) Straight-line amortization of a bond discount LO 10.4 Diaz Company issued bonds with a $115,000 face value on January 1, Year 1. The bonds had a 8 percent stated rate of interest and a 10-year term. Interest is paid in cash annually, beginning December 31 , Year 1 . The bonds were issued at 99 . The straight-line method is used for amortization. b. Determine the carrying value (face value less discount or plus premium) of the bond liability as of December 31 , Year 1 . c. Determine the amount of interest expense reported on the Year 1 income statement. d. Determine the carrying value (face value less discount or plus premium) of the bond liability as of December 31 , Year 2 e. Determine the amount of interest expense reported on the Year 2 income statement