Doyle Company issued $360,000 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 $57,500 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. Note: 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 Assets Liabilities + Event Cash + Land = Bonds Payable + Stockholders' Equity Retained Earnings Account Titles for Retained Earnings Year 2 1/1 + = + 1/1 + = + 12/31 + = + 12/31 = + + 0 + 0 = 0 + 0 Balance Year 3 Beginning balance 12/31 0 + 0 = 0 + 0 + = + 12/31 + = + Ending balance 0 + 0 = 0 + 0
Doyle Company issued $360,000 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 $57,500 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. Note: 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 Assets Liabilities + Event Cash + Land = Bonds Payable + Stockholders' Equity Retained Earnings Account Titles for Retained Earnings Year 2 1/1 + = + 1/1 + = + 12/31 + = + 12/31 = + + 0 + 0 = 0 + 0 Balance Year 3 Beginning balance 12/31 0 + 0 = 0 + 0 + = + 12/31 + = + Ending balance 0 + 0 = 0 + 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Doyle Company issued $360,000 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 $57,500 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.
Note: 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
Assets
Liabilities
+
Event
Cash
+
Land
=
Bonds
Payable
+
Stockholders'
Equity
Retained
Earnings
Account Titles for
Retained Earnings
Year 2
1/1
+
=
+
1/1
+
=
+
12/31
+
=
+
12/31
=
+
+
0
+
0
=
0
+
0
Balance
Year 3
Beginning balance
12/31
0
+
0
=
0
+
0
+
=
+
12/31
+
=
+
Ending balance
0
+
0
=
0
+
0
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