On SEPTEMBER 30,2011,Ace Electronics issued $100,000 of 10-year,8% bonds at 100.The bonds pay interest semiannually on September 30 and March 31.On its statement of cash flows for the year ended December 31,2011,Ace will show Cash paid for interest of ________.
A)$0
B)$(4,000)in the cash flows from financing activities section of the statement
C)$(4,000)in the cash flows from operating activities section of the statement
D)$(2,000)in the cash flows from operating activities section of the statement

Question

On SEPTEMBER  30,2011,Ace Electronics issued $100,000 of 10-year,8% bonds at 100.The bonds pay interest semiannually on September 30 and March 31.On its statement of cash flows for the year ended December 31,2011,Ace will show Cash paid for interest of ________.
A)$0
B)$(4,000)in the cash flows from financing activities section of the statement
C)$(4,000)in the cash flows from operating activities section of the statement
D)$(2,000)in the cash flows from operating activities section of the statement

Quizplus · Accepted Answer

The Answer of On SEPTEMBER  30,2011,Ace Electronics issued $100,000 of 10-year,8% bonds at 100.The bonds pay interest semiannually on September 30 and March 31.On its statement of cash flows for the year ended December 31,2011,Ace will show Cash paid for interest of ________.
A)$0
B)$(4,000)in the cash flows from financing activities section of the statement
C)$(4,000)in the cash flows from operating activities section of the statement
D)$(2,000)in the cash flows from operating activities section of the statement

On SEPTEMBER 30,2011,Ace Electronics Issued $100,000 of 10-Year,8% Bonds