a. Use a financial statements model like the one shown below to demonstrate how (the January 1 Year 1 bond issue and (2) the December 31 Year 1. recognition of interest expense, including the amortization of the premium and the cash payment, affects the company's financial statements. Use for increase, - for decrease, and if there is no effect, leave the cell blank b. Determine the carrying value (ace value les discount of plus premium of the bond liability as of December 31, Year 1 c. Determine the amount of interest expense reported on the Year income statement d. Determine the carrying value of the bond liability as of December 31, Year 2 e. Determine the amount of interest expense reported on the Year 2 income statement Req A Req B to E Use a financial statements model like the one shown below to demonstrate how (1) the January 1, Year 1, bond issue and ( Year 1, recognition of interest expense, including the amortization of the premium and the cash payment, affects the compa statements. Use + for increase, - for decrease, and if there is no effect, leave the cell blank. (In the Cash Flow column, indi item is an operating activity (OA), an investing activity (TA), or a financing activity (FA) and if there is no effect, leave the ce cells will require entry.) SQUARE FOOT GRILL, INC. Effect of Transactions on Financial Statements Balance Sheet Income Statement Event No Assets Liabilities + Stockholders Equity Statement of Cash Flow Revenue Net Income Expense 1 2a 2b RO Req B to E> d. Determine the carrying value of the bond liability as of December 31, Year 2 e. Determine the amount of interest expense reported on the Year 2 income statement. Complete this question by entering your answers in the tabs below. Reg A Req B to E b. Determine the carrying value (face value less discount or plus premium) of the bond liability as of December 31, Year 1 c. Determine the amount of interest expense reported on the Year 1 income statement. d. Determine the carrying value of the bond liability as of December 31, Year 2 e. Determine the amount of interest expense reported on the Year 2 income statement. Show less b. Carrying value Year 1 c. Interest expense Year 1 d. Carrying value Year 2 e Interest expense Year 2