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

320,000

Jan.

2

Retire bonds

64,000

256,000

June

30

Issue bonds

192,000

448,000

ACCOUNT Discount on Bond Payable									ACCOUNT NO.
									Balance
Date			Item		Debit		Credit		Debit		Credit
2016
Jan.	1			Balance					14,400
Jan.	2			Retire bonds			5,120		9,280
June	30			Issue bonds	12,900				22,180
Dec.	31			Amortize discount			1,110		21,070

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