Brief Exercise $21-5($Static$)$ Bond interest and discount $[$LO$21-3,21-6]$

Agee Technology, Incorporated, issued $9\%$ bonds, dated January $1,$ with a face amount of $$400$ million on July $1,2024,$ at a price of $$380$ million. For bonds of similar risk and maturity, the market yield is $10\%.$ Interest is paid semi$-$annually on June $30$ and December $31.$

Required:

Prepare the journal entry to record interest at the effective interest rate at December $31.$ What would be the amount$($s$)$ related to the bonds that Agee would report in its statement of cash flows for the year ended December $31,2024,$ if it uses the direct method?

Complete this question by entering your answers in the tabs below.

General

Journal

Cash Paid

What would be the amount$($s$)$ related to the bonds that Agee would report in its statement of cash flows for the year ended December $31,2024,$ if it uses the direct method?

Note: Cash outflows should be indicated with a minus sign. Enter your answers in millions $($i$.$e$.,10,000,000$ should be entered as $10).$

$\backslash$table$[[,($$ in millions$)],[$Cash outflow from operating activities,$],[$Cash inflow from financing activities,$],[,]]$