The company issued $300,000 of 5% 15-year bonds on January 1, 2018. The bonds were promptly

sold at 102. Interest is payable semi-annually on June 30 and December 31. What is the affect that this would have on the number presented on the cash flows statement for the year ended 12/31/2018?

Trial Balance December 31, 2018 and 2017 2018 2017 Debits Credits Debits Credits $ $ 127,373 430,600 100,825 390,200 $ 27,000 $ 23,000 635,740 20,000 16,460 100,000 560,000 576,475 23,500 14,850 100,000 400,000 248,000 230,000 381,000 290,000 160,000 103,000 9 Cash 10 Accounts receivable 11 Allowance for doubtful accounts 12 Inventory 13 Prepaid expenses 14 Cash surrender value of life insurance 15 Land 16 Buildings 17 Accumulated depreciation - buildings 18 Equipment 19 Accumulated depreciation - equipment 20 Patents 21 Trademarks 22 Accounts payable 23 Income taxes payable 24 Salaries and wages payable 25 Long-term notes payable 26 Bonds payable 27 Premium on bonds payable 28 Common stock 29 Paid-in capital in excess of par 30 Retained earnings 96,000 25,000 70,000 35,000 534,000 62,000 73,500 60,000 300,000 5,700 150,000 568,000 203,973 508,000 34,500 42,750 100,000 250,000 125,000 418,000 166,600 $ 2,392,173 $ 2,392,173 $ 2,000,850 $ 2,000,850