On January 1, 2013, Lesley Company issued bonds with a face value of $250,000, a stated rate of interest of 10 percent, and a five-year term to maturity. Interest is payable in cash on December 31 of each year. The effective rate of interest was 12 percent at the time the bonds were issued. The bonds sold for $231,976. Lesley used the effective interest rate method to amortize bond discount.

Required
a. Prepare an amortization table as shown below:

b. What item(s) in the table would appear on the 2016 balance sheet?
c. What item(s) in the table would appear on the 2016 income statement?
d. What item(s) in the table would appear on the 2016 statement of cashflows?

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as Interest Discount Carrying Payment Expense Amortization Value January 1, 2013 December 31, 2013 December 31, 2014 December 31, 2015 December 31, 2016 December 31, 2017 Totals 231,976 234,813 25,000 27,837 2,837 125,000 143,024 18,024