1. Cash paid to purchase long-term investments would be reported in the statement of cash flows in a.the cash flows from financing activities section. b.the cash flows from investing activities section. c.a separate schedule. d.the cash flows from operating activities section.   2. On the first day of the fiscal year, a company issues a $1,000,000, 7%, 5-year bond that pays semiannual interest of $35,000 ($1,000,000 × 7% × 1/2), receiving cash of $884,171. Journalize the first interest payment and the amortization of the related bond discount/premium using the straight-line method. Round answers to the nearest dollar.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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1. Cash paid to purchase long-term investments would be reported in the statement of cash flows in
a.the cash flows from financing activities section.
b.the cash flows from investing activities section.
c.a separate schedule.
d.the cash flows from operating activities section.
 

2. On the first day of the fiscal year, a company issues a $1,000,000, 7%, 5-year bond that pays semiannual interest of $35,000 ($1,000,000 × 7% × 1/2), receiving cash of $884,171. Journalize the first interest payment and the amortization of the related bond discount/premium using the straight-line method. Round answers to the nearest dollar.

If an amount box does not require an entry, leave it blank or enter "0".

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