90.2K

Verified Solution

Link Copied!

Doyle Company issued $430,000 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 $56,000 of cash revenue, which was collected on December 31 of each year, beginning December 31, Year 2

Item2

Part 1 of 2

12.5points

eBook

Print

References

Check my workCheck My Work button is now enabled

Item2

Item 2 Part 1 of 2 12.5 points Item Skipped

Required information

Exercise 10-6A Two accounting cycles for bonds issued at face value LO 10-3

[The following information applies to the questions displayed below.] Doyle Company issued $430,000 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 $56,000 of cash revenue, which was collected on December 31 of each year, beginning December 31, Year 2.

Exercise 10-6A 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 "Accounts Titles for Retained Earnings" column may require an input - leave cells blank if there is no corresponding input needed.)

---------------------------------------------------------------------------------------------------------------------------------------------------

event	cash	land	bonds payable	retained earnings	accounts titles for retained earnings
year 2
1/1
1/1
12/31
12/31
bal.
year 3
12/31
12/31
end bal.

Answer & Explanation Solved by verified expert

See Answer