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 470,000 Jan Balance 94,000 Retire bonds 376,000 Jan June 30 282,000 Issue bonds 658,000 ACCOUNT Discount on Bond Payable ACCOUNT NO Balance Date Credit Item Debit Debit Credit Balance 21,150 Jan Retire bonds 7,520 Jan 13,630 June 30 Issue bonds 18,900 32,530 Amortize discount Dec.31 1,630 30,900 Section of Statement of Cash Flows Added or Deducted Item Amount Deducted Retire bonds Financing activities section Issue bonds Financing activities section Added Amortization of discount Operating activities section, if indirect method used Added
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