Exercise 10-20A (Algo) Effective interest amortization of a bond discount LO 10-6 On January 1, Year 1, Parker Company issued bonds with a face value of $67,000, a stated rate of interest of 7 percent, and a five-year term to maturity. Interest is payable in cash on December 31 of each year. The effective rate of interest was 9 percent at the time the bonds were issued. The bonds sold for $61,788. Parker used the effective interest rate method to amortize the bond discount. Note: Round your intermediate calculations and final answers to the nearest whole dollar amount. Required a. Prepare an amortization table. b. What is the carrying value that would appear on the Year 4 balance sheet? c. What is the interest expense that would appear on the Year 4 income statement? d. What is the amount of cash outfow for interest that would appear in the operating activities section of the Year 4 statement of cash flows? The Square Foot Grill, Incorporated issued $182,000 of 10 -year, 6 percent bonds on January 1, Year 2, at 102 . Interest is payable in cash annually on December 31 . The straight-line method is used for amortization. Required a. Use a financial statements model to demonstrate how (1) 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 company's financial statements. b. Determine the carrying value (face value less discount or plus premium) of the bond liablity 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 liability as of December 31, Year 3 . e. Determine the amount of interest expense reported on the Year 3 income statement. Complete this question by entering your answers in the tabs below. Determine the carrying value (face value less discount or plus premium) of the bond liability as of December 31, Year 2. Determine the amount of interest expense reported on the Year 2 income statement. Determine the carrying value of the bond liability as of December 31 , Year 3 . Determine the amount of interest expense reported on the Year 3 income statement