On January 1, Year One, Gijulka Corporation offers to issue a $100,000 bond coming due in exactly ten years. This bond pays a stated cash interest rate of 6 percent per year on December 31. A buyer is found. After some negotiations, the parties agree on an effective annual yield rate of 7 percent. Consequently, the bond is issued for $92,974. The effective rate method is applied.

1. What figures will be reported for this bond in Gijulkas Year One financial statements?
2. What figures will be reported for this bond in Gijulkas Year Two financial statements?

For each of the following transactions, indicate whether the cash flows are reported in the operating activities section of the statement of cash flows, the investing activities section, or the financing activities section.

1. Issuance of bonds payable
2. Cash paid for interest
3. Cash collected from customers
4. Paid dividends
5. Sold equipment for cash
6. Issued preferred stock for cash
7. Cash paid for inventory purchases
8. Purchased a small percentage of the ownership shares of another company
9. Cash received from dividend income