1. 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 A summary of the cash receipts and cash payments for a specific period of time, such as a month or a year.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

   470,000

   Jan.

   2

   Retire bonds

   94,000

   376,000

   June

   30

   Issue bonds

   282,000

   658,000

   ACCOUNT Discount on Bond Payable

   ACCOUNT NO.

   Balance

   Date

   Item

   Debit

   Credit

   Debit

   Credit

   Jan.

   1

   Balance

   21,150

   Jan.

   2

   Retire bonds

   7,520

   13,630

   June

   30

   Issue bonds

   18,900

   32,530

   Dec.

   31

   Amortize discount

   1,630

   30,900

   Item	Section of Statement of Cash Flows	Added or Deducted	Amount
   Retire bonds	Financing activities section Investing activities section Operating activities section, if indirect method used Separate schedule	Added Deducted Report only	$
   Issue bonds	Financing activities section Investing activities section Operating activities section, if indirect method used Separate schedule	Added Deducted Report only	$
   Amortization of discount	Financing activities section Investing activities section Operating activities section, if indirect method used Separate schedule	Added Deducted Report only	$