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

360,000

Jan.

2

Retire bonds

72,000

288,000

June

30

Issue bonds

216,000

504,000

ACCOUNT Discount on Bond Payable

ACCOUNT NO.

Balance

Date

Item

Debit

Credit

Debit

Credit

Jan.

1

Balance

16,200

Jan.

2

Retire bonds

5,760

10,440

June

30

Issue bonds

14,500

24,940

Dec.

31

Amortize discount

1,250

23,690

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