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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 460,000 Jan. 1 Balance 368,000 2 92,000 Retire bonds 276,000 644,000 June 30 Issue bonds ACCOUNT NO. ACCOUNT Discount on Hond Payable Balance Debit Credit Debit Credit Date Item 20,700 Jan. 1 Balance 7.360 13,340 2 Retire bonds 31,840 18,500 June 30 Issue bonds 1,590 30,250 Dec. Amortize discount 31 ---tart Amount Section of Statement of Cash Flows Added or Deducted Item Amount Deducted Retire bonds Financing activities section Issue bonds Amortization of discount
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