Jayroe Company was started when it issued bonds with $300,000 face value on January 1, 2013. The bonds were issued for cash at 103. They had a 15 year term to maturity and an 6 percent annual interest rate. Interest was payable annually. Jayroe immediately purchased land with the proceeds (cash received) from the bond issue. Jayroe leased the land for $36,000 cash per year. On January 1, 2016, the company sold the land for $310,000 cash. Immediately after the sale, Jayroe repurchased its bonds (repaid the bond liability) at 104. Assume that no other accounting events occurred in 2016.
Required:
Prepare an income statement, statement of changes in equity, balance sheet and statement of cash flows for each of the 2013, 2014, 2015, and 2016 accounting periods. Assume that the company closes its books on December 31 of each year. Prepare the statements using a vertical statements format.