Amortization of Discount Stacy Company issued five-year, 7% bonds with a face value of $13,000 on January 1, 2015. Interest is paid annually on December 31. The market rate of interest on this date is 9%, and Stacy Company receives proceeds of $11,989 on the bond issuance. Use the appropriate present value table: PV of $1 and PV of Annuity of $1 Required: 1. Prepare a five-year table to amortize the ciscount using the effective interest method. If required, round all calculations to the nearest collar. Enter all amounts as positive numbers. Dete 1/01/16 Discount Amortization Effective Interest Method of Amortization Cash Interest 7% Interest Expense 9% Discount Amortized Carrying Value 12/31/15 12/31/17 12/31/18 12/31/19 12/31/20 Totals 2. What is the total interest expense over the life of the bonds? cash interest payment? discount amortization? Total interest expense Cash interest payment Discount amerization 3. Prepare the journal entry for the payment of interest and the amortization of discount on December 31, 2018 (the third year). Indicate the effect on financial statement items by selecting "-" for decrease (or negative effect), "+" for increase (or positive effect) and "NE" for No Entry (or no effect) on the financial statement. Journal Balance Sheet Income Statement Date Description 2018 Dec. 31 Debit Credit Assets Determine the balance sheet presentation of the bends for December 31, 2018. Stacy Company Balance Sheet (Partial) December 31, 2018 Liabilities Stockholders' Equity Revenues Expenses Net Income