Retirement of Bonds Payable on the Statement of Cash Flows-Indirect Method Brownstone Corp. has the following debt outstanding on December 31, 2017: 10% bonds payable, due 12/31/21 $503,000 Discount on bonds payable (40,000) 5463,000 On this date, Brownstone retired the entire bond issue by paying cash 5513,060 Required: 1. Identify and analyze the transaction to record the bond retirement. Activity Accounts Statement(s) How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Remember: if a contra account is increased, it will have the effect decreasing the corresponding financial statement item. Balance Sheet Income Statement Stockholders Assets = Liabilities Equity Revenues Expenses 2. How would the bond retirement would be reported on the statement of cash flows assuming that Brownstone uses the indirect method? in the section. The gain or loss on the retirement would be to the The cash paid to retire the bonds would be reported as a