Issuing Bonds at a Premium On the first day of the fiscal year, a company issues a $2,400,000, 11%, 8-year bond that pays semiannual interest of $132,000 ($2,400,000 x 11% x 15), receiving cash of $2,530,054. Joumalize the bond issuance. If an amount box does not require an entry, leave it blank. Present Value of Bonds Payable; Premium Moss Co. Issued $100,000 of four-year, 12% bonds with interest payable semiannually, at a market (effective) interest rate of 11%. Determine the present value of the bonds payable using the present value tables Exhibit 8 and Exhibit 10. Round to the nearest dollar. Joumalizing installment Notes On the first day of the fiscal year, a company issues $69,000, 9%, seven-year installment notes that have annual payments of $13,710. The first note payment consists of $6,210 of interest and $7,500 of principal repayment. a. Journalize the entry to record the issuance of the installment notes. If an amount box does not require an entry, leave it blank. 88 b. Journalize the first annual note payment. If an amount box does not require an entry, leave it blank. Classifying Cash Flows Identify whether each of the following would be reported as an operating, investing, or financing activity on the statement of cash flows: a. Retirement of bonds payable b. Purchase of inventory for cash C. Cash sales d. Repurchase common stock e. Payment of accounts payable f. Disposal of equipment Determining Cash Flows from (Used for) Operating Activities Yeoman Inc. reported the following data: Net income $323,500 Depreciation expense 78,500 Loss on disposal of equipment 23,300 Increase in accounts receivable 27,500 Increase in accounts payable 10,200 Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Yeoman Inc. Statement of Cash Flows (partial) Cash flows from (used for) operating activities: Adjustments reconcile net income to net cash flows from (used for) operating activities: II II O Changes current operating assets and liabilities: Net cash flows from operating activities o