Spears Company is preparing its financial statements for the year ended June 30, 2018. The financial statements are complete except for the statement of cash flows. I'll need to submit a statement of cash flows for the year ended June 30, 2018.

Required:

1. In the Excel Worksheet column named 'Worksheet Entries', show under Debit and Credit, the amounts that would be used in preparation of the statement of cash flows.
2. Prepare the Spears Company statement of cash flows for the year ended June 30, 2018. Prepare the statement of cash flows using the indirect method. Note: For full credit, you must prepare the statement of cash flow in good form with all necessary disclosures, including disclosures about noncash financing and investing activities.

I'm only interested in understand how to calculate the the cashflows for the bond portion of this assignment. The assignment asks us to calculate the difference, credits and debits for the worksheet.

Credits 6/30/17 Balance 6/30/18 Balance

Bonds payable 0 60,000

Premium on bonds payable 0 1,140

Unadjusted each would have a credit balance reflecting the 6/30/18 figures. But given the other information provided below how are these figures adjusted?

Other Information: 10 year, 10% bonds payable were sold on December 31, 2017, at 102, plus accrued interest. Discounts and premiums are amortized using the straight-line method. Interest is paid with cash semiannually.