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:

Transcribed Image Text:

ACCOUNT Bonds Payable ACCOUNT NO Balance Date Item Debit Credit Debit Credit 2016 1Balance 2 Retire bonds Jan. 750,000 600,000 1,050,000 150,000 June 30 Issue bonds 450,000 ACCOUNT Discount on Bonds Payable ACCOUNT NO Balance Date Item Debit Credit Debit Credit 2016 Jan. 1 Balance 2 Retire bonds June 30 Issue bonds Dec.31 Amortize discount 33,750 12,000 21,750 51,750 2,625 49,125 30,000