Amortization of Premium Stacy Company Issued five-year, 12% bonds with a face value of $5,000 on January 1, 2016. Interest is paid annually on December 31. The market rate of interest of January 1, 2016, is 10% and the proceeds from the bond issuance equal $5,379. Required: 1. Prepare a five-year table to amortize the premium using the effective interest method. Enter all amounts as positive numbers. If required, round all calculations and final answers to the nearest dollar. *Note: Due to rounding you will have to adjust the interest expense DOWN to the nearest dollar 12/31/20. Stacy Company Premium Amortization Effective Interest Method of Amortization Date Cash Interest 12% Interest Expense 10% Premium Amortized Carrying Value 1/01/16 12/31/16 $ 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? premium amortization? Interest expense Cash interest payment Premium amortized 3. Prepare the journal entry for the payment of interest and the amortization of premium 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 Date Description 2018 Dec. 31 Debit Credit Assets Determine the balance sheet presentation of the bonds on December 31, 2018. Stacy Company Balance Sheet (Partial) December 31, 2018 Balance Sheet Stockholders' Liabilities + Equity Revenues Income Statement Net Expenses Income