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 Jan. 1 Balance 750,000 2 Retire bonds 150,000 600,000 June 30 Issue bonds 450,000 1,050,000 ACCOUNT Discount on Bonds Payable ACCOUNT NO. Balance Date Item Debit Credit Debit Credit Jan. 1 Balance 33,750 2 Retire bonds 12,000 21,750 June 30 Issue bonds 30,000 51,750 Dec. 31 Amortize discount 2,625 49,125
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 Jan. 1 Balance 750,000 2 Retire bonds 150,000 600,000 June 30 Issue bonds 450,000 1,050,000 ACCOUNT Discount on Bonds Payable ACCOUNT NO. Balance Date Item Debit Credit Debit Credit Jan. 1 Balance 33,750 2 Retire bonds 12,000 21,750 June 30 Issue bonds 30,000 51,750 Dec. 31 Amortize discount 2,625 49,125
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
| ACCOUNT Bonds Payable | ACCOUNT NO. | |||||||||||
| Balance | ||||||||||||
| Date | Item | Debit | Credit | Debit | Credit | |||||||
| Jan. | 1 | Balance | 750,000 | |||||||||
| 2 | Retire bonds | 150,000 | 600,000 | |||||||||
| June | 30 | Issue bonds | 450,000 | 1,050,000 |
| ACCOUNT Discount on Bonds Payable | ACCOUNT NO. | |||||||||||
| Balance | ||||||||||||
| Date | Item | Debit | Credit | Debit | Credit | |||||||
| Jan. | 1 | Balance | 33,750 | |||||||||
| 2 | Retire bonds | 12,000 | 21,750 | |||||||||
| June | 30 | Issue bonds | 30,000 | 51,750 | ||||||||
| Dec. | 31 | Amortize discount | 2,625 | 49,125 |
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