6 Help 10 Doints Exercise 10-14A Straight-line amortization of a bond discount LO 10-4 Diaz Company issued bonds with a 5102.000 face value on January 1 Year 1. The bonds rud a 9 percent stated rate of interest and 10-year term interest is paid in cash annually beginning December 31, Year 1 The bonds were sted at 97 The strage.me methods used for amortization Required .. Use a financial statements model like the one shown next to demonstrate how (the January 1 Year 1. bond issue and me December 31, Year 1. recognition of interest expense, including the amortization of the discount and the cash payment, affect me company's financial statements Use for increase or - for decrease in the Statement of Cash Flows column, use the OA 0 designate operating activity, IA for investing activity and FA for financing activity. Columns for events that have no effect on any of the elements should be left blank) (Note: Not all cells will require an input.) Book Hi Effect of Transactions on lance Sheet Stockholders Event No. Arse Income Statement Expen Ne income 1 2 3. Determine the carrying value face value les discount or los premium of the body of December c. Determine the amount of interest expense reported on the war income statement d. Determine the carrying value face value es discount or plus premium of the bond lays of December .. Determine the amount of interest expense reported on the Year 2 income statement Carry Interest expen Canyo Dere expense