Reporting Issuance and Retirement of Long-Term DebtOn 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 PayableACCOUNT NO.BalanceDateDebitCreditJan.1BalanceRetire bonds112,000June 30Issue bondsACCOUNT Discount on Bonds PayableDateItemBalanceRetire bondsIssue bondsAmortize discountJan.12June30Dec. 31ItemDebit22,500336,000Credit8,9601,940DebitCredit560,000448,000784,000ACCOUNT NO.BalanceDebit25,20016,24038,74036,800Credit ItemRetire bondsIssue bondsAmortization of discountSection of Statement of Cash FlowsAdded or DeductedAmount

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Description: Reporting Issuance and Retirement of Long-Term DebtOn 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,assumin

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

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter15: Statement Of Cash Flows

Section: Chapter Questions

Problem 14E

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BONDS ISSUED AT A DISCOUNT, REDEEMED AT A GAIN Ellis Co. issued the following bonds at a discount: REQUIRED Prepare journal entries for: (a) Issuance of the bonds. (b) Interest payment and discount amortization on the bonds on September 30, 20-1. (c) Year-end adjustment on the bonds for 20-1. (d) Reversing entry for the beginning of 20-2. (e) Redemption of 50,000 of the bonds on April 1, 20-4, at 96.
Problem Reporting Long-Term Debt Fridley Manufacturings accounting records reveal the following account balances after adjusting entries are made on December 31, 2020. Required: Prepare the current liabilities and long-term debt portions of Fridleys balance sheet at December 31, 2020. Provide a separate line item for each issue (do not combine separate bonds or notes payable), but some items may need to be split into more than one item. Accounts payable $ 62,500 Bonds payable (9.4%, due in 2027) 800,000 Lease liability* 41,500 Bonds payable (8.7%, due in 2023) 50,000 Deferred tax liability* 133.400 Discount on bonds payable (94%, due in 2027) 12,600 Income taxes payable 26,900 * Long term liability Interest payable $ 38,700 Installment note payable (8%, equal installments due 2021 to 2024) 120,000 Notes payable (7.8%, due in 2025) 400,000 Premium on notes payable (7.8%, due in 2025) 6, [00 Note payable, 4% $50,000 face amount. due in 2026 (net of discount) 31,900
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. Date Item Debit Credit Balance Debit Balance Credit Jan. 1 Balance 540,000 Jan. 2 Retire bonds 108,000 432,000 Jan. 3 Issue bonds 324,000 756,000 Account Discount on Bonds Payable Account NO. Date Item Debit Credit Balance Debit Balance Credit Jan. 1 Balance 42,300 Jan. 2 Retire bonds 8,640 15,660 June 30 Issue bonds 27,700 37,360 Dec. 31 Amortize discount 1,870 35,490 Item Section of Statement of Cash Flows Added or Deducted Amount Retire bonds Financing activities section Deducted $ Issue bonds…
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 “Cash flows from 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
Reporting issuance and retirement of ling-term debt On the basis of the details of the following bonds payable and related descount aacounts,indicates the items to be reported in the "Cash flows from financing activities" section of the statement of cash flows, assuming no gain or loss on retiring the bonds:
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
Please help me answer these with the correct solutions 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. Date Item Debit Credit Balance Debit Balance Credit Jan. 1 Balance 540,000 Jan. 2 Retire bonds 108,000 432,000 Jan. 3 Issue bonds 324,000 756,000 Account Discount on Bonds Payable Account NO. Date Item Debit Credit Balance Debit Balance Credit Jan. 1 Balance 42,300 Jan. 2 Retire bonds 8,640 15,660 June 30 Issue bonds 27,700 37,360 Dec. 31 Amortize discount 1,870 35,490 Item Section of Statement of Cash Flows Added or Deducted Amount Retire bonds…
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