eBook 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 Date Jan. 1 2 June 30 Item Date Jan. 1 2 June 30 Dec. 31 ACCOUNT Discount on Bonds Payable Retire bonds Issue bonds Item Balance Retire bonds Issue bonds Amortization of discount Print Item Item Balance Retire bonds Issue bonds Amortize discount Debit 76,000 Debit 15,300 Credit 228,000 Credit 6,080 1,320 ACCOUNT NO. Debit Section of Statement of Cash Flows Balance Credit Debit 17,100 11,020 26,320 25,000 380,000 304,000 532,000 ACCOUNT NO. Balance Credit Added or Deducted Amount

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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
Jan.
Date
June
Item
Debit
1980
Retire bonds
76,000
Jan.
Item
Date
30
ACCOUNT Discount on Bonds Payable
1
June
30
Dec. 31
2
Issue bonds
Retire bonds
Balance
Issue bonds
Print Item
Item
Balance
Retire bonds
Issue bonds
Amortize discount
Amortization of discount
Debit
Check My Work 2 more Check My Work uses remaining.
15,300
Credit
228,000
Credit
6,080
1,320
ACCOUNT NO.
Debit
Section of Statement of Cash Flows
Balance
Debit
Credit
ACCOUNT NO.
380,000
304,000
532,000
Balance
17,100
11,020
26,320
25,000
Credit
Added or Deducted
$
Amount
Previous
Next
Transcribed Image Text:eBook 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 Jan. Date June Item Debit 1980 Retire bonds 76,000 Jan. Item Date 30 ACCOUNT Discount on Bonds Payable 1 June 30 Dec. 31 2 Issue bonds Retire bonds Balance Issue bonds Print Item Item Balance Retire bonds Issue bonds Amortize discount Amortization of discount Debit Check My Work 2 more Check My Work uses remaining. 15,300 Credit 228,000 Credit 6,080 1,320 ACCOUNT NO. Debit Section of Statement of Cash Flows Balance Debit Credit ACCOUNT NO. 380,000 304,000 532,000 Balance 17,100 11,020 26,320 25,000 Credit Added or Deducted $ Amount Previous Next
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