Reporting Issuance and Retirement of Long-Term Debt

On the basis of the details of the following bonds payable and related discount accounts, indicate the items to be reported in the Financing Activities section of the statement of cash flows, assuming no gain or loss on retiring the bonds:

ACCOUNT Bonds Payable

ACCOUNT NO.

Balance

Date

Item

Debit

Credit

Debit

Credit

Jan.

1

Balance

750,000

2

Retire bonds

150,000

600,000

June

30

Issue bonds

450,000

1,050,000

ACCOUNT Discount on Bonds Payable									ACCOUNT NO.
									Balance
Date			Item		Debit		Credit		Debit		Credit
Jan.	1			Balance					33,750
	2			Retire bonds			12,000		21,750
June	30			Issue bonds	30,000				51,750
Dec.	31			Amortize discount			2,625		49,125

Item	Section of Statement of Cash Flows	Added or Deducted	Amount
Retire bonds			$
Issue bonds			$
Amortization of discount			$