Question
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. | 1 | Balance | 540,000 | |||||||||
| Jan. | 2 | Retire bonds | 108,000 | 432,000 | ||||||||
| June | 30 | Issue bonds | 324,000 | 756,000 | ||||||||
| ACCOUNT Discount on Bond Payable | ACCOUNT NO. | |||||||||||
| Balance | ||||||||||||
| Date | Item | Debit | Credit | Debit | Credit | |||||||
| Jan. | 1 | Balance | 24,300 | |||||||||
| Jan. | 2 | Retire bonds | 8,640 | 15,660 | ||||||||
| June | 30 | Issue bonds | 21,700 | 37,360 | ||||||||
| Dec. | 31 | Amortize discount | 1,870 | 35,490 | ||||||||
| Item | Section of Statement of Cash Flows | Added or Deducted | Amount |
| Retire bonds | $ | ||
| Issue bonds | $ | ||
| Amortization of discount | $ |
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Cost Accounting Principles
Authors: Kinney Raiborn
14th Edition
9788131521069
