On January 1 of this year, Houston Company issued a bond with a face value of $19,000 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. (Use the appropriate factor(s) from the tables provided. Round your final answers to whole dollars.

1. Complete a bond amortization schedule for all three years of the bond's life. (Enter all values as positive values.)

Date	Cash Interest	Interest Expense	Amortization	Book Value of Bond
Jan. 01, Year 1
Dec. 31, Year 1
Dec. 31, Year 2
Dec. 31, Year 3

2. What amounts will be reported on the income statement and balance sheet at the end of Year 1 and Year 2?

December 31	Year 1	Year 2
Interest Expense
Bond Liability