Exercise 10-15A (Algo) Straight-line amortizotion of a bond premium LO 10-5 The Square Foot Grill, Incoiporated issued $249000 of 10 -year, 5 percent bonds on January 1 , Year 2 , at 102 . Interest is payable in cash anrually on December 3 . The straight line method is used for amortization. Required a. Use a financial statemens model to demonstrate how (5) the January 1, Year 2 , bond issue and (2) the December 31 , Year 2. recognition of interest expense, including the amortization of the premium and the cash payment, affects the compary's financial statements b. Determine the carryng value (face value less discount or plus premiumf of the bond liabity as of December 31 , Year 2. c. Determine the amount of interest expense reported on the Year 2 income statement. d. Determine the carrying value of the bond liabilty as of December 31 , Year 3 . e. Defermine the amount of interest expense reponted on the Year 3 income statement. Coenplete this question by entering your answers in the tabs below. Use a financial satements model to demonstrake how (1) the January 1, Year 2 , bond issue and (2) the December 31 , Year 2 , recognition of imterest expense, including the amortization of the premium and the cash payment, atfects the company's financial statements. Wote. Use - for increase of - for decrease, In the Statement of Cash Flome column, whe the initials on to designate operating activity, In for Investing activity, and EA for financiog activity, tok all celis require ineut. Exercise 10-15A (Algo) Straight-line amortization of a bond premium LO 10-5 The Square Foot Gril, Incorpotated issued $249,000 of 10 -year, 5 percent bonds on Jandary 1, Year 2, at 102. Interest is payable in cash annually on December 31 . The straightdine method is used for amoricration Required a. Use a fancial statements model to deinonstrate how (7) the January 1, Yeat 2, bond issue and (2) the December 31 , Year 2 . recognition of interest emense, inctuding the amortization of the premium and the cash payment, affects the company's financial statements. b. Defermine the carrying value (face value less discount oc plus premiumy of the bond liabilit as of December 31 , Year 2. c. Desermine the amount of interest expense reported on the Year 2 income statement. d. Determine the carrying value of the bond liability as of December 31, Year 3 . e. Detecmine the amount of interest expense reponted on the Year 3 income statement. Cormplete this question by entering your answers in the tabs below. Oetermine the carrieg valut (face value iess dscevet of peys premium) of the bond liability as of December 31, Year 2. 0etermine the amount of inlerest expente reperted ea the Year 2 income statement. Determine the carrying value of the bond liability as of Dectowber 31, Year 3. Getermine the amount of limerest expehse reported en the Year 3 inconse statement