Exercise 10-21A Effective interest amortization of a bond premium LO 10-7 On January 1, 2016, Young Company issued bonds with a face value of $113.000, a stated rate of interest of 15 percent, and a 10-year term to maturity Interest is payable in cash on December 31 of each year The effective rate of interest was 14 percent at the Sime the bonds were issued. The bonds sold for $118894 Young used the effective interest rate method to amortize the bond premium Required a. Determine the amount of the premium on the day of issue b. Determine the amount of interest expense recognized on December 31, 2016 (Round your answer to the nearest dollar amount. c. Determine the carrying value of the bond liability on December 31,2016 (Round your answer to the nearest dollar amount) d. Provide the general journal entry necessary to record the December 31, 2016, interest expense gf no entry is required for a transactionlevent, select "No journail entry required" in the first account field. Round your answers to the nearest dollar amount Journal entry worksheet Record the interest expense. Note: Enter debits before credits Debit 2016