Doyle Company issued $362,000 of 10-year, 5 percent bonds on January 1, Year 1. The bonds wereissued at face value. Interest is payable in cash on December 31 of each year. Doyle immediately investedthe proceeds from the bond issue in land. The land was leased for an annual $52, 500 of cash revenue,which was collected on December 31 of each year, beginning December 31, Year 1.Journal entry worksheetNote: Enter debits before credits.4DateDec 315ü6Record the interest expense for bonds payable for Year 2.General JournalC78DebitCredit>

As per the infomation, Doyle issued $ 362,000 bonds for 10 years. At the end of each year interest…

y issued $362,000 of 10-year, 5 percent bonds on January 1, Year 1. The bonds were alue. Interest is payable in cash on December 31 of each year. Doyle immediately invested om the bond issue in land. The land was leased for an annual $52, 500 of cash revenue, ected on December 31 of each year, beginning December 31, Year 1. entry worksheet

y issued $362,000 of 10-year, 5 percent bonds on January 1, Year 1. The bonds were alue. Interest is payable in cash on December 31 of each year. Doyle immediately invested om the bond issue in land. The land was leased for an annual $52, 500 of cash revenue, ected on December 31 of each year, beginning December 31, Year 1. entry worksheet

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On January 1 of the current year, a company paid $200,000 cash to purchase 10%, 10-year bonds, with a par value of $200,000; interest is paid semiannually each June 30 and December 31. The company intends to hold these bonds until they mature. Prepare the journal entry for the interest received on December 31 of the current year.
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…
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