Reporting Issuance and Retirement of LongTerm 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
Jan. Balance
Retire bonds
June Issue bonds
ACCOUNT Discount on Bonds Payable ACCOUNT NO
Balance
Date Item Debit Credit Debit Credit
Jan. Balance
Retire bonds
June Issue bonds
Dec. Amortize discount
Item Section of Statement of Cash Flows Added or Deducted Amount
Retire bonds
$fill in the blank
Issue bonds
$fill in the blank
Amortization of discount
