Business, 10.05.2020 00:57, kyralynn123

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 750,000
2 Retire bonds 150,000 600,000
June 30 Issue bonds 450,000 1,050,000
ACCOUNT Discount on Bonds Payable ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
Jan. 1 Balance 33,750
2 Retire bonds 12,000 21,750
June 30 Issue bonds 30,000 51,750
Dec. 31 Amortize discount 2,625 49,125

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

Answers: 3

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On the basis of the details of the following bonds payable and related discount accounts, indicate t...