! Required information [The following information applies to the questions displayed below.] Doyle Company issued $500,000 of 10-year, 7 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 $125,000 of cash revenue, which was collected on December 31 of each year, beginning December 31, Year 1. Required a. Organize the transaction data in accounts under the accounting equation for Year 1 and Year 2. (Enter any decreases to account balances with a minus sign. If there is no effect on the Account Titles for Retained Earnings, leave the cell blank. Not all cells will require entry.) a. Organize the transaction data in accounts under the accounting equation for Year 1 and Year 2. (Enter any decreases to account balances with a minus sign. If there is no effect on the Account Titles for Retained Earnings, leave the cell blank. Not all cells will require entry.) DOYLE COMPANY Effect of Events on the Accounting Equation Year 1 and Year 2 Stockholders' Assets = Liabilities + Equity Bonds Retained Cash + Land Payable Earnings Event Account Titles for Retained Earnings + Year 1 1/1 Interest expense 1/1 Interest expense 12/31 500,000| + 500,000+ 125,000 + 35,000| + 1,160,000 + 500,000/= 500,000 125,000/= 35,000 1,160,000 500,000 + 500,000 + 125,000 + 35,000+ 1,160,000 + Interest expense 12/31 Interest expense Bal. 0 Year 2 Beg. bal. + = + 12/31 + Interest expense 125,000+ 35,000| + 125,000/= 35,000 12/31 + Interest expense