Exercise 12-11A (Algo) Determining cash flows from financing activities LO 12-4On January 1, Year 1, DIBA Company had a balance of $426,000 in its Bonds Payable account. During Year 1, DIBA issued bonds with a$156,000 face value. There was no premium or discount associated with the bond issue. The balance in the Bonds Payable accounton December 31, Year 1, was $284,000.Requireda. Determine the cash outflow for the repayment of bond liabilities assuming that the bonds were retired at face value.Cash outflow for the repayment of bond liabilitiesb. Prepare the financing activities section of the Year 1 statement of cash flows.Note: Amounts to be deducted should be indicated with a minus sign.Cash flows from financing activities:Net cash flow from financing activities$0

A bond is a type of instrument used by a company to raise additional money from the market. The…

On January 1, Year 1, DIBA Company had a balance of $426,000 in its Bonds Payable account. During Year 1, DIBA issued bonds with a $156,000 face value. There was no premium or discount associated with the bond issue. The balance in the Bonds Payable account on December 31, Year 1, was $284,000.

On January 1, Year 1, DIBA Company had a balance of $426,000 in its Bonds Payable account. During Year 1, DIBA issued bonds with a $156,000 face value. There was no premium or discount associated with the bond issue. The balance in the Bonds Payable account on December 31, Year 1, was $284,000.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter12: The Statement Of Cash Flows

Section: Chapter Questions

Problem 12.24MCE

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