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Presenting Bond Payable on Statement of Cash Flows Yale Corporation issued a 6 % , $ 3 6 , 0 0 0 5 - year
Presenting Bond Payable on Statement of Cash Flows
Yale Corporation issued a $year bond dated January with interest payable annually on December The bond was sold to yield interest. Assume that the company uses the effective interest
method to amortize bond discounts or premiums.
a Provide journal entries to be made on January and December of this first year.
Note: If a journal entry isn't required on any of the dates shown, select NAdebit" and NAcredit" as the account names and leave the Dr and Cr answers blank zero
b Indicate the impact of this transaction on the operating, investing, and financing sections of the current year statement of cash flows. The indirect method is used to report cash flows from operating activities.
Note: Indicate a subtraction in the cash flow statement with a negative sign in the Amount column.
Note: If an item is not included in the cash flow statement, enter zero leave blank in the Amount column, and enter NA in the Cash Flow Section column.
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