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 thebonds:

Transcribed Image Text:

ACCOUNT Bonds Payable ACCOUNT NO Balance Date Item Debit Credit Debit Credit 2014 1Balance 2 Retire Jan 400,000 320,000 560,000 80,000 June 30 Issue bonds 240,000 ACCOUNT Discount on Bond Payable ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 2014 1Balance 2 Retire bonds Jan 18,000 6,400 11,600 27,600 1,400 26,200 16,000 June 30 Issue bonds Dec. 31 Amortize discount