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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
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 A summary of the cash receipts and cash payments for a specific period of time, such as a month or a year.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 | |||||||
2016 | ||||||||||||
Jan. | 1 | Balance | 470,000 | |||||||||
Jan. | 2 | Retire bonds | 94,000 | 376,000 | ||||||||
June | 30 | Issue bonds | 282,000 | 658,000 |
ACCOUNT Discount on Bond Payable | ACCOUNT NO. | |||||||||||
Balance | ||||||||||||
Date | Item | Debit | Credit | Debit | Credit | |||||||
2016 | ||||||||||||
Jan. | 1 | Balance | 21,150 | |||||||||
Jan. | 2 | Retire bonds | 7,520 | 13,630 | ||||||||
June | 30 | Issue bonds | 18,900 | 32,530 | ||||||||
Dec. | 31 | Amortize discount | 1,630 | 30,900 |
Item Retire bonds $ Issue bonds $ Amortization of discount $ |
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