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 Jan Jan June 30 Item Debit Credit Debit Balance Retire bonds Issue bonds Credit 600,000 480,000 840,000 120,000 360,000 ACCOUNT Discount on Bond Payable ACCOUNT NO Balance Date Item Debit Credit Debit 27,000 17,400 41,500 39,420 Credit Balance Retire bonds Issue bonds Amortize discount 9,600 Jan June 30 Dec. 31 24,100 2,080 Section of Statement of Cash Flows Added or Deducted Amount Financing activities section Financing activities section Operating activities section, if indirect method used Deducted Retire bonds Issue bonds Amortization of discount Added Added v