Financial Accounting
15th Edition
ISBN: 9781337272124
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 16, Problem 14E
To determine
Indicate the items to be reported on the statement of cash flows.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
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…
Chapter 16 Solutions
Financial Accounting
Ch. 16 - Prob. 1DQCh. 16 - Prob. 2DQCh. 16 - A corporation issued 2,000,000 of common stock in...Ch. 16 - A retail business, using the accrual method of...Ch. 16 - If salaries payable was 100,000 at the beginning...Ch. 16 - Prob. 6DQCh. 16 - A corporation issued 2,000,000 of 20-year bonds...Ch. 16 - Fully depreciated equipment costing 50,000 is...Ch. 16 - Prob. 9DQCh. 16 - Prob. 10DQ
Ch. 16 - Prob. 1PEACh. 16 - Prob. 1PEBCh. 16 - Ripley Corporations accumulated...Ch. 16 - Ya Wen Corporations accumulated...Ch. 16 - Zwilling Corporations comparative balance sheet...Ch. 16 - Prob. 3PEBCh. 16 - Demers Inc. reported the following data: Prepare...Ch. 16 - Staley Inc. reported the following data: Prepare...Ch. 16 - Simkin Corporation purchased land for 420,000....Ch. 16 - IZ Corporation purchased land for 400,000. Later...Ch. 16 - Prob. 6PEACh. 16 - Prob. 6PEBCh. 16 - The cost of merchandise sold reported on the...Ch. 16 - The cost of merchandise sold reported on the...Ch. 16 - Prob. 8PEACh. 16 - Prob. 8PEBCh. 16 - Prob. 1ECh. 16 - State the effect (cash receipt or payment and...Ch. 16 - Identify the type of cash flow activity for each...Ch. 16 - Indicate whether each of the following would be...Ch. 16 - The net income reported on the income statement...Ch. 16 - The net income reported on the income statement...Ch. 16 - The income statement disclosed the following items...Ch. 16 - The board of directors declared cash dividends...Ch. 16 - An analysis of the general ledger accounts...Ch. 16 - An analysis of the general ledger accounts...Ch. 16 - On the basis of the details of the following fixed...Ch. 16 - On the basis of the following stockholders equity...Ch. 16 - Prob. 13ECh. 16 - Prob. 14ECh. 16 - Curwen Inc. reported net cash flow from operating...Ch. 16 - Selected data derived from the income statement...Ch. 16 - The comparative balance sheet of Olson-Jones...Ch. 16 - The following statement of cash flows for Shasta...Ch. 16 - Prob. 19ECh. 16 - Prob. 20ECh. 16 - Prob. 21ECh. 16 - The income statement of Booker T Industries Inc....Ch. 16 - The income statement for Rhino Company for the...Ch. 16 - Prob. 24ECh. 16 - The financial statements for Nike, Inc., are...Ch. 16 - Lovato Motors Inc. has cash flows from operating...Ch. 16 - The comparative balance sheet of Navaria Inc. for...Ch. 16 - The comparative balance sheet of Yellow Dog...Ch. 16 - The comparative balance sheet of Whitman Co. at...Ch. 16 - The comparative balance sheet of Canace Products...Ch. 16 - The comparative balance sheet of Navaria Inc. for...Ch. 16 - The comparative balance sheet of Merrick Equipment...Ch. 16 - The comparative balance sheet of Harris Industries...Ch. 16 - The comparative balance sheet of Coulson, Inc. at...Ch. 16 - The comparative balance sheet of Martinez Inc. for...Ch. 16 - The comparative balance sheet of Merrick Equipment...Ch. 16 - Lucas Hunter, president of Simmons Industries...Ch. 16 - Prob. 3CPCh. 16 - Prob. 4CPCh. 16 - Prob. 5CP
Knowledge Booster
Similar questions
- Which method involves the larger adjustment in the Cash Flow Statement (prepared under the indirect method) to net income in deriving funds provided by operations in the first year for a bond issued at more than par value Multiple Choice All the three statements about bonds are correct effective interest method of accounting for interest expense on bonds declining balance method of accounting for interest expense on bonds straight-line method of accounting for interest expense on bonds None of the other alternatives are correctarrow_forwardReporting 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…arrow_forwardReporting 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 49,125arrow_forward
- In the balance sheet, the account Discount on Bonds Payable is Group of answer choices added to bonds payable deducted from bonds payable classified as a stockholders equity account classified as an assetarrow_forwardWhich of the following need not be disclosed in a schedule accompanying the statement of cash flows as an investing and financing activity not affecting cash? a. acquisition of fixed assets in exchange for capital stock b. dividend distributed in capital stock of the company (stock dividend) c. retirement of a bond issue through the issuance of another bond issue d. conversion of convertible debt to capital stockarrow_forwardThe following items are found in the financial statements.Indicate how each of these items should be classified in the financial statements. Classification (a) Discount on bonds payable. select a financial statement Balance SheetIncome statement (b) Interest expense (credit balance). select a financial statement Balance SheetIncome statement (c) Unamortized bond issue costs. select a financial statement Balance SheetIncome statement (d) Gain on repurchase of debt. select a financial statement Balance SheetIncome statement (e) Mortgage payable (payable in equal amounts over next 3 years). select a financial statement Balance SheetIncome statement…arrow_forward
- A debit to Discount on Bonds Payable would most likely be possible on which of the situations? issuance of bonds increase in the carrying amount of bonds record of interest expense which is lower than the amount paid early retirement of bondsarrow_forwardWhen bonds and other debt securities are issued, payments such as legal costs, printing costs, and underwriting fees, are referred to as debt issuance costs (called transaction costs under IFRS). If Rushing International prepares its financial statements using IFRS: a. the recorded amount of the debt is increased by the transaction costs. b. the decrease in the effective interest rate caused by the transaction costs is reflected in the interest expense. c. the transaction costs are recorded separately as an asset. d. the increase in the effective interest rate caused by the transaction costs is reflected in the interest expense.arrow_forwardBond issue costs, such as printing fees, legal fees, commissions, etc. are most appropriately accounted for by a. charging them to an expense account in the year the bonds are actually sold. b. debiting them to unamortized bond issue costs, setting them as a deferred charge on the statement of financial position, and amortizing them in a manner similar to bond discount over the life of the bond. c. charging them to an expense account in the year the bonds are originally dated whether or not they are sold in that year. d. considering them in the measurement of the bonds payable.arrow_forward
- The application of the present value factors in the computation of carrying amounts of bonds payable is a representation of what accounting principle? Conservatism Matching Principle Time Value of Money Materialityarrow_forwardUnder IFRS, bond issuance costs, including the printing costs and legal fees associated with the issuance, should be:(a) expensed in the period when the debt is issued.(b) recorded as a reduction in the carrying value of bonds payable.(c) accumulated in a deferred charge account and amortized over the life of the bonds.(d) reported as an expense in the period the bonds mature or are redeemed.arrow_forwardWhich of the following does not impact the calculation ofthe cash interest payments to be made to bondholders?a. Face value of the bond.b. Stated interest rate.c. Market interest rate.d. The length of time between payments.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage Learning
Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Financial Accounting: The Impact on Decision Make...
Accounting
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning