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Problem - Retirement of Debt - Moore Company is preparing its statement of cash flows for the current year. During the year, the company retired two issuances of debt and properly recorded the transactions. These transactions were as follows:
1. Paid cash of $18,000 to retire bonds payable with a face value of $20,000 and a book value of $18,300.
2. Paid cash of $38,000 to retire bonds payable with a face value of $35,000 and a book value of $37,000.
Required - Record, in journal entry form, the entries that Moore would make for the preceding transactions on its spreadsheet to prepare its statement of cash flows.
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