Reporting Issuance and Retirement of Long-Term Debt On the basis of the details of the...
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Accounting
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 Jan. 1 Balance 370,000 2 Retire bonds 74,000 296,000 June 30 Issue bonds 222,000 518,000 ACCOUNT Discount on Bond Payable ACCOUNT NO. Balance Date Item Debit Credit Debit Credit Jan. 1 Balance 16,650 2 Retire bonds 5,920 10,730 June 30 Issue bonds 14,900 25,630 Dec. 31 Amortize discount 1,280 24,350 Item Section of Statement of Cash Flows Added or Deducted Amount Retire bonds Financing activities section Deducted Issue bonds Financing activities section Added $ Amortization of discount Operating activities section, if indirect method used Added
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