Amortization of Premium Ortega Company issued five-year, 5% bonds with a face value of $50,000 on January 1, 2017. Interest is paid annually on December 31. The market rate of interest of January 1, 2017, is 4% and the proceeds from the bond issuance equal $52,227. Required: 1. Prepare a five-year table to amortize the premium using the effective interest method. Enter all amounts as positive numbers. Round all amounts to the nearest whole dollar, Note: Due to rounding you will have to adjust the interest expense for 12/31/21 so the carrying value equals $50,000. Ortega Company Premium Amortization Effective Interest Method of Amortization Cash Interest 5% Interest Expense 4% Premium Amortized Carrying Value Date 1/01/17 12/31/17 12/31/18 12/31/19 12/31/20 IIII 12/31/21 Totals 2. What is the total interest expense over the life of the bonds? cash interest payment? premium amortization? Interest expense Book 2. What is the total interest expense over the life of the bonds? cash interest payment? premium amortization? Interest expense Cash interest payment Premium amortization 3. Identify and analyze the effect of the payment of interest on December 31, 2019 (the third year). Activity I Accounts Statement(s) How does this entry affect the accounting equation? If a financial statementem is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, le, a decrease, bo sure to enter the answer with a minus sign Balance Sheet Income Stateme Stockholders Equity Assets Llabilities + Revenues Balance Sheet Income Statement Stockholders Equity Assets Labilities Revenues Expenses Prepare the balanca sreet presentation of the hands on December 31, 2019 (ne third year) Ortege Company Balance Sheet (Partial) December 31, 2019