Abardeen Corporation borrowed $62,000 from the bank on October 1, Year 1. The note had an 6 percent annual rate of interest and matured on March 31, Year 2. Interest and principal were paid in cash on the maturity date. Required a. What amount of cash did Abardeen pay for interest in Year 1? b. What amount of interest expense was recognized on the Year 1 income statement? (Do not round intermediate calculations. Round your answer to the nearest dollar amount.) c. What amount of total liabilities was reported on the December 31, Year 1, balance sheet? (Do not round intermediate calculations. Round your answer to the nearest dollar amount.) d. What total amount of cash was paid to the bank on March 31, Year 2, for principal and interest? e. What amount of interest expense was reported on the Year 2 income statement? (Do not round intermediate calculations. Round your answer to the nearest dollar amount.) Diaz Company issued $76,000 face value of bonds on January 1 , Year 1 . The bonds had a 5 percent stated rate of interest and a tenyear term. Interest is paid in cash annually, beginning December 31, Year 1. The bonds were issued at 98 . The straight-line method is used for amortization. Required a. Use a financial statements model like the one shown below to demonstrate how (1) the January 1, Year 1, bond issue and (2) the December 31, Year 1, recognition of interest expense, including the amortization of the discount and the cash payment, affect the company's financial statements. 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 (face value less discount or plus premium) 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. Use a financial statements model like the one shown below to demonstrate how (1) the January 1, Year 1, bond issue and (2) the December 31 , Year 1, recognition of interest expense, including the amortization of the discount and the cash payment, affect the company's financial statements. (Use + for increase, - for decrease and if the element is not affected, leave the cell blank. In the Cash Flow column, indicate whether the item is an operating activity (OA), an investing activity (IA), or a financing activity (FA) and if there is no effect, leave the cell blank. Not all cells will require entry.) Diaz Company issued $76,000 face value of bonds on January 1 , Year 1 . The bonds had a 5 percent stated rate of interest and a tenyear term. Interest is paid in cash annually, beginning December 31, Year 1. The bonds were issued at 98 . The straight-line method is used for amortization. Required a. Use a financial statements model like the one shown below to demonstrate how (1) the January 1, Year 1, bond issue and (2) the December 31, Year 1, recognition of interest expense, including the amortization of the discount and the cash payment, affect the company's financial statements. 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 (face value less discount or plus premium) 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. 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 (face value less discount or plus premium) of the bond liability as of December 31, Year 2. e. Determine the amount of interest expense reported on the Year 2 income statement. Required For each of the following situations, calculate the amount of bond discount or premium, if any. (Do not round intermediate calculations.)