Select transactions of June Bowen Inc. (JBI)are listed below. JBI uses the indirect method to determine cash flows from operating activities.
1. JBI amortizes $12,000 of the discount on bonds payable.
2. At year-end JBI increases its allowance for bad debts by $18,000.
3. JBI's income tax expense totaled $50,000. Its income tax payable account increased $5,000, while its deferred income tax liability account decreased $8,000.
4. JBI makes a principal payment of $25,000 on a lease liability subsequent to the commencement date.
5. JBI declares and distributes a stock dividend valued at $33,000.
6. JBI declares a cash dividend of $30,000. The dividends payable account increases $10,000.
7. JBI sells a n investment at amortized cost for $28,000. The investment's book value is $20,000.
Required:
Discuss how the activities listed above would be reported in the statement of cash flows. For items with multiple reporting options, identify all available options. For items not reported on the statement of cash flows, indicate the disclosure requirements, if any.

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The Answer of Select transactions of June Bowen Inc. (JBI)are listed below. JBI uses the indirect method to determine cash flows from operating activities.
1. JBI amortizes $12,000 of the discount on bonds payable.
2. At year-end JBI increases its allowance for bad debts by $18,000.
3. JBI's income tax expense totaled $50,000. Its income tax payable account increased $5,000, while its deferred income tax liability account decreased $8,000.
4. JBI makes a principal payment of $25,000 on a lease liability subsequent to the commencement date.
5. JBI declares and distributes a stock dividend valued at $33,000.
6. JBI declares a cash dividend of $30,000. The dividends payable account increases $10,000.
7. JBI sells a n investment at amortized cost for $28,000. The investment's book value is $20,000.
Required:
Discuss how the activities listed above would be reported in the statement of cash flows. For items with multiple reporting options, identify all available options. For items not reported on the statement of cash flows, indicate the disclosure requirements, if any.

Select Transactions of June Bowen Inc