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

2016

Jan. 1 Balance 390,000

Jan. 2 Retire bonds 78,000 312,000

June 30 Issue bonds 234,000 546,000

ACCOUNT Discount on Bond Payable ACCOUNT NO.

Balance

Date Item Debit Credit Debit Credit

2016

Jan. 1 Balance 17,550

Jan. 2 Retire bonds 6,240 11,310

June 30 Issue bonds 15,700 27,010

Dec. 31 Amortize discount 1,350 25,660

Item Section of Statement of Cash Flows Added or Deducted Amount

Retire bonds

$

Issue bonds

$

Amortization of discount

$