The accounting records of Ruhl Products at December 31, 2010 and 2011 included t

Question

The accounting records of Ruhl Products at December 31, 2010 and 2011 included the following:

2010 2011
Long-term notes payable $141,000 $150,000
During 2011, Ruhl issued $60,000 of long-term notes in exchange for computer software. During 2011, there was no amortization of premium or discount on notes. In its 2011 statement of cash flows, Ruhl should report for redemption of notes payable:
__ 5. a cash outflow of:
a. $ 9,000
b. $51,000
c. $60,000
d. $69,000
( I was told that with a decrease of $9,000 in LT Notes Payable that the company paid $51,000 in cash on the long term note. Is that the correct answer?)

Explanation / Answer

Yes, b. $51,000
Notes payble in 2010 141000 Add: Issued Notes 60000 201000 Less: Closing Notes 150000 Redemption Notes $51,000 Notes payble in 2010 141000 Add: Issued Notes 60000 201000 Less: Closing Notes 150000 Redemption Notes $51,000
Thank you..... Notes payble in 2010 141000 Add: Issued Notes 60000 201000 Less: Closing Notes 150000 Redemption Notes $51,000

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