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 Cash flows from financing activities section of the statement of cash flows, assuming no gain or loss on retiring the bonds:

ACCOUNT Bonds PayableACCOUNT NO.

Balance

DateItemDebitCreditDebitCredit

Jan.1 Balance 450,000

2 Retire bonds90,000 360,000

June30 Issue bonds 270,000 630,000

ACCOUNT Discount on Bond PayableACCOUNT NO.

Balance

DateItemDebitCreditDebitCredit

Jan.1 Balance 20,250

2 Retire bonds 7,200 13,050

June30 Issue bonds18,100 31,150

Dec.31 Amortize discount 1,560 29,590

ItemsSection of Statement of Cash FlowsAdded or DeductedAmount

Retire bondsFinancing activities section Deducted $

Issue bondsFinancing activities section Added $

Amortization of discountOperating activities section, if indirect method used Added $