E10-10 (Algo) Preparing a Bond Amortization Schedule for a Bond Issued at a Discount and Determining Reported Amounts LO10-4 On January 1 of this year, Ikuta Company issued a bond with a face value of $140,000 and a coupon rate of 6 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 7 percent Ikuta uses the effective-Interest amortization method. (FV of S1, PV of S1. FVA 01 S1, and PVA of $1] (Use the appropriate foctors) 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 Jan. 01. Year 1 Dec 31 Year 1 Dec 31 Year 2 Doc. 31. Year 3 Answer is complete but not entirely correct. Cash Interest Book Value Interest Amortization Expense of Bond IS 3,674 $ 8,4005 9.5435 1.143 S 25313 $ 8,400 5 9.623 1.223 s 1 308 S 8.400 5 9 7085 1.3085 063 you have completed so far. It does J.VN Is , CON ! Dec 31, Year 1 Dec. 31, Year 2 Dec. 31. Year 3 $ $ 8,400 $ 8,400 $ 8,400 $ 9,543 9,623 9,708 $ 1.143 15 1,223S 1,308 2,531 1,308 0 % 5 $ 2. What amounts will be reported on the income statement and balance sheet at the end of Year 1 and Year 22 Answer is complete but not entirely correct. December 31 Interest expense Bonds payable IS Year 1 1,143 X $ 137,469 $ Year 2 1.223 138,692 $