Required information (The following information applies to the questions displayed below.) Doyle Company issued $254,000 of 10-year, 5 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 $66,500 of cash revenue, which was collected on December 31 of each year, beginning December 31, Year 1. Required a. Prepare the journal entries for these events, and post them to T-accounts for Year 1 and Year 2. (if no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet x Debit Credit 379,000 NELU Me v veyou 379,000 379,000 379,000 18,950 18,950 Record the purchase of land. Record the receipt of lease revenue. Record the Interest expenses for bonds payable. Record the entry to close revenue and expense accounts. Record the receipt of lease revenue. Record the interest expenses for bonds payable. 8 Record the entry to close revenue and expense accounts. Journal entry has been entered 45,000 18,950 26,050 45,000 Note: 45,000 6 Dec 31 18,950 Interest expense Cash 18,950 7 Dec 31 Lease revenue 45,000 Interest expenso Retained earnings 18,950 26.050 (Select "el" for all the closing entries.) Cash Land Year 1 Year 1 0 End, Bal End. Bal. Year 2 Retained Earnings Year 1 End. Bal. Bonds Payable End. Bal. Year 1 Year 2 End. Bal. End. Bal. Lease Revenue Interest Expense Year 1 Year 1 End. Bal End. Bal Year 2 Year 2 End, Bal End. Bal b. Prepare the income statement, balance sheet, and statement of cash flows for Year 1 and Year 2. (Amounts to be deducted and net loss amount should be indicated with minus sign.) DOYLE COMPANY Income Statements For the Year Ended December 31 Year 1 Year 2 DOYLE COMPANY Balance Sheets For the Year Ended December 31 Year 1 Year 2 Assets Totalausets Liabilities Stockholder's equity Total stockholder's equity Total liab, and stockholders' equity DOYLE COMPANY Statements of Cash Flows For the Year Ended December 31 Year 1 Year 2 Cash flows from operating activities: Net cash flow from operating act. Cash flows from investing activities: Cash flows from financing activities: Net change in cash Ending cash balance