Problem #8 - Purchase of Bonds as Investment (6 points: Barracuda Company purchased $400,000 of 8 percent bonds of Renato Corporation on January 1, 2015, at a discount, paying S369.112. The bonds mature January 1, 2016 and yield 10% interest payable cach July 1 and January 1 Problem #7: a) Record the Journal entry on Barracuda's books for purchase of the bonds: b) Record the receipt by Barracuda of the first semi-annual interest payment (note: you must calculate the amount of the bond discount amortization pertaining to the first semi-annual payment) - Show your calculations Problems #9: Statement of cash flows (Indirect Method) (10 points) Builders' Retail Company has prepared the following comparative balance sheets for 2018 and 2017: 2018 2017 Cash S 287,000 S 153,000 Accounts receivable 149,000 117,000 Inventory 150,000 180,000 Prepaid expenses 18,000 27,000 Plant assets 1,280,000 1,050,000 Accumulated depreciation (450,000) (375,000) Patent 153.000 174.000 $1.587.000 $1,326.000 Accounts payable $153,000 $168,000 Accrued liabilities 60,000 42,000 Mortgage payable - 450,000 Preferred stock 525,000 - Additional paid-in capital preferred 120,000 - Common stock 600,000 600,000 Retained earnings 129.000 66.000 $1.587.000 $1.326,000 1. The Accumulated Depreciation account has been credited only for the depreciation expense for the period. 2. The Retained Earnings account has been charged for dividends of S158,000 and credited for the net income for the year. The income statement for 2018 is as follows: Sales $1,980,000 Cost of sales 1,089,000 Gross profit 891,000 Operating expenses 670,000 Net income S 221.000 Instructions From the information above, prepare a statement of cash flows (indirect method) for the year ended December 31, 2018 2 Page