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On January 1 of this year, Houston Company issued a bond with a face value of $ 1 3 , 0 0 0 and a

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On January 1 of this year, Houston Company issued a bond with a face value of $13,000 and a coupon rate of 5 percent. The bond matures in 3 years and pays interest every December 31. When the bond was issued, the annual market rate of interest was 4 percent. Houston uses the effective-interest amortization method. (FV of $1, PV of $1, FVA of $1, and PVA of $1)
Note: Use appropriate factor(s) from the tables provided.
Required:
Complete a bond amortization schedule for all three years of the bond's life.
What amounts will be reported on the income statement and balance sheet at the end of Year 1 and Year 2?
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Complete a bond amortization schedule for all three years of the bond's life.
Note: Enter all values as positive values. Round your intermediate calculations and final answers to whole dollars.
\table[[Date,Cash Interest,\table[[Interest],[Expense]],Amortization,\table[[Book Value of],[Bond]]],[January 01, Year 1],[December 31, Year 1,650,,,],[December 31, Year 2,650,,,],[December 31, Year 3,650,,,]]
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