Help Save & E Sum 4 Exercise 10-15A (Algo) Straight-line amortization of a bond premium LO 10-5 5 4 The Square Foot Gril, Inc. issued 5237,000 of 10 year, percent bonds on Januaryt Your 2 at 102. Interest is payable in cash only 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 the December 31, Year 2 recognition of interest expense, including the amortization of the premium and the cash payment afforts the company's financial statements b. Determine the carrying value face value less discount or plus premium of the bond liability as of December 3 Year 2 c. Determine the amount of interest expense reported on the Year 2 income statement d. Determine the carrying value of the bond ability as of December 31, Year 3 e. Determine the amount of interest expense reported on the Year 3 income statement Pin Complete this question by entering your answers in the tabs below. Ing A Reg to 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, affect the company's financial statements (Use for increase or for decrease in the Statement of Cash Flows column, use the initials Onto de operating activity, IA for Westing activity and FA for financing activity: Not all cells require input.) Show less SQUARE FOOT GRILL. ING. Effect of Transaction Financial Statements Balance Sheet Income statement Event Statement of No = Liabilities Stockholders Net Equity Revenue Expanse Cash Flows Income 1. 2 wow the January 1 Yew 2. bond issue and (2) the December 31, Yar 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 ability 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 5 po 04.09 Complete this question by entering your answers in the tabs below. NGA Recto Prve 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 income statement Show b. Carrying value interest expense d Carrying value Interest expense