Reference no: EM131215741
Reporting Issuance and Retirement of Long-Term Debt
On the basis of the details of the following bonds payable and related discount accounts, indicate the items to be reported in the Financing Activities section of the statement of cash flows, assuming no gain or loss on retiring the bonds:
ACCOUNT Bonds Payable ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
2016
Jan. 1 Balance 390,000
Jan. 2 Retire bonds 78,000 312,000
June 30 Issue bonds 234,000 546,000
ACCOUNT Discount on Bond Payable ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
2016
Jan. 1 Balance 17,550
Jan. 2 Retire bonds 6,240 11,310
June 30 Issue bonds 15,700 27,010
Dec. 31 Amortize discount 1,350 25,660
Item Section of Statement of Cash Flows Added or Deducted Amount
Retire bonds $
Issue bonds $
Amortization of discount $
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