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

530,000

Jan.

2

Retire bonds

106,000

424,000

June

30

Issue bonds

318,000

742,000

ACCOUNT Discount on Bond Payable

ACCOUNT NO.

Balance

Date

Item

Debit

Credit

Debit

Credit

Jan.

1

Balance

23,850

Jan.

2

Retire bonds

8,480

15,370

June

30

Issue bonds

21,300

36,670

Dec.

31

Amortize discount

1,830

34,840

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

options are "added, deducted, report only"

options are "financing activites section, investing activites section, operating activities section, if indirect method used, seperate section"