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:
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:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
| ACCOUNT Bonds Payable | ACCOUNT NO. | |||||||||||
| Balance | ||||||||||||
| Date | Item | Debit | Credit | Debit | Credit | |||||||
| Jan. | 1 | Balance | 300,000 | |||||||||
| 2 | Retire bonds | 60,000 | 240,000 | |||||||||
| June | 30 | Issue bonds | 180,000 | 420,000 |
| ACCOUNT Discount on Bonds Payable | ACCOUNT NO. | |||||||||||
| Balance | ||||||||||||
| Date | Item | Debit | Credit | Debit | Credit | |||||||
| Jan. | 1 | Balance | 13,500 | |||||||||
| 2 | Retire bonds | 4,800 | 8,700 | |||||||||
| June | 30 | Issue bonds | 12,100 | 20,800 | ||||||||
| Dec. | 31 | Amortize discount | 1,040 | 19,760 |
| Item | Section of Statement of Cash Flows | Added or Deducted | Amount |
| Retire bonds |
|
|
$fill in the blank 3 |
| Issue bonds |
|
|
$fill in the blank 6 |
| Amortization of discount |
|
|
$fill in the blank 9 |
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