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Determine the cash outflow for the repayment of bond

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Reference no: EM133091934

Question - On January 1, Year 1, DIBA Company had a balance of $460,000 in its Bonds Payable account. During Year 1, DIBA issued bonds with a $180.000 face value. There was no premium or discount associated with the bond issue. The balance in the Bonds Payable account on December 31, Year 1, was $296,000.

Required -

a. Determine the cash outflow for the repayment of bond liabilities assuming that the bonds were retired at face value.

b. Prepare the financing activities section of the Year 1 statement of cash flows.

Reference no: EM133091934

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