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

590,000

Jan.

2

Retire bonds

118,000

472,000

June

30

Issue bonds

354,000

826,000

ACCOUNT Discount on Bond Payable

ACCOUNT NO.

Balance

Date

Item

Debit

Credit

Debit

Credit

Jan.

1

Balance

26,550

Jan.

2

Retire bonds

9,440

17,110

June

30

Issue bonds

23,700

40,810

Dec.

31

Amortize discount

2,040

38,770

Item	Section of Statement of Cash Flows	Added or Deducted	Amount
Retire bonds			$
Issue bonds			$
Amortization of discount			$