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 $420,000 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 $50,500 of cash revenue, which was collected on December 31 of each year, beginning December 31, Year 2 Exercise 10-6A (Algo) Part a Required a. Organize the transaction data in accounts under the accounting equation for Year 2 and Year 3. (Enter any decreases to account balances with a minus sign. Not all cells in the "Account Titles for Retained Earnings" column may require an input- leave cells blank if there is no corresponding Input needed.) DOYLE COMPANY Effect of Events on the Accounting Equation Year 2 and Year 3 Stockholders Liabilities Equity Bonds Retained Land Payable Earnings Assets Account Titles for Retained Earnings Event Cash Year 2 1/1 11 12/31 12/31 Bal 0 0 Dans wa mig inn. NORI PARCURY ESTO PER UN Mean Required information DOYLE COMPANY Effect of Events on the Accounting Equation Year 2 nd Years + Stockholders Liabilities Equity Land Bonds Retained Payable Earnings Assets Event Account Title Rutine Emisi Cash Year 2 1/1 11 0 12/31 12/31 Bal Year 3 0 0 0 - 0 0 + 01 - 0 Beg bal 12/31 12/31 End, bal. 0+ 0 + NOVI > Required information b. Prepare the income statement, balance sheet, and statement of cash flows for Year 2 and Year 3. Complete this question by entering your answers in the tabs below. Req B Inc Stmt Req B Bal Sheet Req B Stmt Cash Flows Prepare the income statement for Year 2 and Year 3. DOYLE COMPANY Income Statements For the Year Ended December 31 Year 2 Year 3 Rog B Bal Sheet> Required information Req B Inc Strnt Req B Bal Sheet Req B Stmt Cash Flows Prepare the balance sheet for Year 2 and Year 3. DOYLE COMPANY Balance Sheet As of December 31 Year 2 Year 3 Assets Total assets Liabilities Total liabilities * * * Required information Liabilities Total liabilities Stockholders' equity Total stockholders' equity Total liabilities and stockholders' equity Required information Req B Inc Strnt Req B Bal Sheet Req B Stmt Cash Flows Prepare the statement of cash flows for Year 2 and Year 3. (Amounts to be deducted and cash outflows should be indicated with minus sign. DOYLE COMPANY Statement of Cash Flows For the Year Endod December 31 Year 2 Cash flows from operating activities Year 3 Net cash flow from operating activities Cash flows from investing activities Required information Net cash flows from investing activities Cash flows from financing activities Net cash flows from financing activities Net change in cash Ending cash balance +
