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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 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. Balance Retire bonds 80,000 Jan. June 2 30 400,000 320,000 560,000 Issue bonds 240,000 ACCOUNT Discount on Bond Payable ACCOUNT NO. Balance Debit Credit Date Item Debit Credit Jan. 1 Balance 18,000 2 Retire bonds 6,400 11,600 Jan. June 30 Issue bonds 16,100 27,700 Dec Amortize discount 1,390 26,310 Item Section of Statement of Cash Flows Added or Deducted Amount Retire bonds Issue bonds Amortization of discount
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