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  3. reporting issuance and retirement of long-term deb

Reporting Issuance and Retirement of Long-Term Debt On the basis of the details...

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Accounting

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
Jan. 1 Balance 450,000
2 Retire bonds 90,000360,000
June 30 Issue bonds 270,000630,000
ACCOUNT Discount on Bonds Payable ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
Jan. 1 Balance 20,250
2 Retire bonds 7,20013,050
June 30 Issue bonds 18,10031,150
Dec. 31 Amortize discount 1,56029,590
Item Section of Statement of Cash Flows Added or Deducted Amount
Retire bonds
$fill in the blank 3
Issue bonds
$fill in the blank 6
Amortization of discount

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