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 $300,000 and a coupon rate of 5 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 6 percent. Ikuta uses the effective-interest amortization method. (FV of $1. PV of $1. FVA of $1, and PVA of $1) (Use the appropriate factors) from the tables provided. Round your answers to whole dollars.) Required: 1. Complete a bond amortization schedule for all three years of the band's life. Date Cash Interest Interest Book Value of Expense Amortization Bond Jan. 01. Year 1 Dec 31, Year 1 Dec 31, Year 2 Dec 31 Year 3 2. What amounts will be reported on the income statement and balance sheet at the end of Year 1 and Year 2? Year 1 Year 2 December 31 Interest expense Bonds payable