On January 1 of this year, Houston Company issued a bond with a face value of $10,500 and a coupon rate of 6 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 5 percent. Houston uses the effective-interest amortization method. A) Complete a bond amortization schedule for all three years of the bond's life B) What amounts will be reported on the income statement and balance sheet at the end of Year 1 and Year 2?