E10-15 Preparing a Debt Payment Schedule with the Effective-Interest Method of Amortization, and Determining Reported Amounts LO10-3

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E10-15 Preparing a Debt Payment Schedule with the Effective-Interest Method of Amortization, and Determining Reported Amounts LO10-3 Shuttle Company issued $1,050,000, three-year, 5 percent bonds on January 1, year 1. The bond interest is paid each December 31, the end of the company's fiscal year. The bond was sold to yield 4 percent Use Table 9C1. Table 9C 2 (Round time value factor to 4 decimal places.) Required: 1. Complete a bond payment schedule. Uselve effective interest amortization method (Make sure that the unamortized discount/premium equals to 'O' and the Net Liability equals to foce value of the bord in the last period. Interest expense in the lost period should be calculated as Cosh Interest (+) discount/(-) premium amortized. Round intermediate and final answers to the nearest whole dollar.) Bond Payment Schedule Cash Payment Interest Amortization Expense of Premium Date Carrying Amount 1/1/year 1 12/31/year 1 12/31/year 2 12/31/year 3 2. What amounts will be reported on the financial statements (statement of financial position, statement of earnings, and statement of cash flows) for year 1. year 2, and year 3? (Round intermediate and final answers to the nearest whole dollar.) Year 1 Year 2 Year 3 Interest expense Bonds payable Interest payment Issuance of bonds Payment of bonds