10-15A Straight-line amortization of a bond premium

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Exercise 10.15A (Algo) Straight-line amortization of a bond premium LO 10.5 The Square Foot Grill, Incorporated issued $217,000 of 10 -year, 6 percent bonds on January 1, Year 2, at 102 interest is payable in cash annually on December 31 The straight-line method is used for amortization. Required a. Use a financial statements model to demonstrate how (1) the January 1, Year 2, bond issue and (2) the December 31, Year 2 , recognition of interest expense, including the amortization of the premium and the cash payment, affects the company's fipancial statements. b. Determine the carrying value (face value less discount or plius premium) of the bond liability as of December 31 , Year 2 c. Determine the amount of interest expense reported on the Year 2 income statement d. Determine the carrying value of the bond liability as of December 31 , Year 3. e. Determine the amount of interest expense reporfed on the Year 3 income statement Complete this question by entering your answers in the tabs below. Determine the carrying value (face value less discount or plus premium) of the bond liabitity as of December 31 , Year 2 . Determine the amount of interest expense reported on the Year 2 income statement. Determine the carrying value (face value less discount or plus premium) of the bond liability as of December 31, Year 2 . Determine the amount of interest expense reoorted on the Year 2 income statement. Determine the carrying value of the bond liability as of December 31 , Year 3. Determine the amount of interest expense reported on the Year 3 income statement