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

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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 360,000
Jan. 2 Retire bonds 72,000 288,000
June 30 Issue bonds 216,000 504,000

ACCOUNT Discount on Bond Payable ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
Jan. 1 Balance 16,200
Jan. 2 Retire bonds 5,760 10,440
June 30 Issue bonds 14,500 24,940
Dec. 31 Amortize discount 1,250 23,690

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

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