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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 2.
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 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 $125,000 of cash revenue, which was collected on December 31 of each year, beginning December 31, Year 2 b. Prepare the income statement, balance sheet, and statement of cash flows for Year 2 and Year 3. 30 Complete this question by entering your answers in the tabs below. int Re B Inc Stmnt Res Bal Sheet Rog B Stmt Cash Flows oces Prepare the statement of cash flows for Year 2 and Year 3. (Amounts to be deducted should be indicated with a minus sign) DOYLE COMPANY Statement of Cash Flows For the Year Ended December 31 Year 2 Year Cashflows from operating activities Reces from revenue $ 125.000 $125.000 125.000 125 000 (Not cash flow trom operating at Cashflows from westing activites Paid to purchase and 000,000) o repare DOYLE COMPANY Statement of Cash Flows For the Year Ended December 31 Year 2 Year 3 Cash flows from operating activities Receipts from revenue $ 125,000 $ 125,000 125,000 125,000 Net cash flow from operating activities Cash flows from investing activities Paid to purchase land (500,000) 0 (500,000) Net cash flows from investing activities Cash flows from financing activities Proceeds from bond issue 500,000 500,000 125,000 Net cash flows from financing activities Net change in cash Plus: Beginning cash balance Ending cash balance 125,000 90,000 $ 215,000 $ 125,000 Red Bal Sheet
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