At the beginning of the current year, two bond issues \((\mathrm{X}\) and \(\mathrm{Y}\) ) were outstanding. During the year, bond issue \(X\) was redeemed and a significant loss on the redemption of bonds was reported as an extraordinary item on the income statement. At the end of the year, bond issue \(Y\) was reported as a current liability because its maturity date was early in the following year. A sinking fund of cash and securities sufficient to pay the series \(Y\) bonds was reported in the balance sheet as Investments.

Identify the flaws in the reporting practices related to the two bond issues.

objs. 2, 3