E10-15 (Algo) Preparing a Bond Amortization Schedule for a Bond Issued at a Premium and Determining Reported Amounts LO10-5 On January 1 of this year, Houston Company issued a bond with a face value of $11,500 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 4 percent Houston uses the effective interest amortization method. (FV of $1. PV of $1. FVA 0f $1, and PVA of $1 (Use the appropriate factor(s) from the tables provided. Round your final answers to whole dollars.) Required: 1. Complete a bond amortization schedule for all three years of the bond's life. (Enter all values as positive values.) ces Date Cash Interest Interont Expense Amortization Book Value of Bond Jan. 01. Year 1 Dec 31 Year 1 Dec 31, Year 2 Dec 31, Year 3 $ $ $ 575 575 575 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