Genesis reported that bonds with a face value of $100,000 and a carrying value of $67,000 are retired for $60,000 cash,resulting in a loss of $7,000.The amount to be reported in the financing section is
A)$(3,000)
B)$57,000
C)$58,000
D)$60,000
E)This item is not reported

Question

Quizplus · Accepted Answer

The amount to be reported in the financing section is the cash paid to retire the bonds, which is $60,000. The loss or gain on retirement is not relevant to the cash flow statement's financing section, which focuses on the inflows and outflows of cash related to financing activities.

Genesis Reported That Bonds with a Face Value of $100,000