Required information [The following information applies to the questions displayed below.] Doyle Company issued $460,000 of 10-year, 9 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 $60,000 of cash revenue, which was collected on December 31 of each year, beginning December 31, Year 1.
Required information [The following information applies to the questions displayed below.] Doyle Company issued $460,000 of 10-year, 9 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 $60,000 of cash revenue, which was collected on December 31 of each year, beginning December 31, Year 1.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please do not give image format
![Required information
[The following information applies to the questions displayed below.]
Doyle Company issued $460,000 of 10-year, 9 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 $60,000 of cash revenue, which was collected on December 31 of each year,
beginning December 31, Year 1.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb0b68c17-0012-4355-9326-4020008027d9%2F0e18cd22-efeb-47f5-9fe4-d8811958f769%2F0xi9amf_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Doyle Company issued $460,000 of 10-year, 9 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 $60,000 of cash revenue, which was collected on December 31 of each year,
beginning December 31, Year 1.
Transcribed Image Text:a. Organize the transaction data in accounts under the accounting equation for Year 1 and Year 2.
Note: 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.
Event
Year 1
1/1
1/1
12/31
12/31
Balance
Year 2
Beginning balance
12/31
12/31
Ending balance
DOYLE COMPANY
Effect of Events on the Accounting Equation
Year 1 and Year 2
Cash
Assets
+
++++
Land
=
=
H
Liabilities
Bonds
Payable
++++
Stockholders'
Equity
Retained
Earnings
Account Titles for
Retained Earnings
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