E10-10 (Algo) Preparing a Bond Amortization Schedule for a Bond Issued at a Discount and Determining Reported Amounts LO10-4 On January of this year, Ikut Company issued a bond with a face value of $160,000 and a coupon rate of 4 percent. The bond matures in 3 years and pays interest every December 31. When the bond was issued, the annual market rate of Interest was 5 percent Ikuta uses the effective interest amortization method. (EVOL.SI, PYGESI EVALS, and PVA $.1) (Use the appropriate factor(a) from the tables provided. Round your answers to whole dollars.) Required: 1. Complete a bond amortization schedule for all three years of the bond's life. Date Cash Interest Interest Expense Amortization Book Value of Bond Jan 01. Your Dec 31 Yeart Dec 31 Year 2 Dec 31 Year 2. What amounts will be reported on the income statement and balance sheet at the end of Year 1 and Year 22 Year 1 Year 2 December 31 Interest expense Bonds payable