Reporting issuance and retirement of long-term debt Obj. 4 On the basis of the details of the following bonds payable and related discount accounts, indicate the items to be reported in the “Cash flows from 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 Balance Retire bonds Issue bonds 1

2 30 Jan.

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

AppendixLO1