On January $1$ of this year, Ikuta Company issued a bond with a face value of $$130,000$ and a coupon rate of $4$ percent. The bond

matures in three years and pays interest every December $31.$ When the bond was issued, the annual market interest rate was $5$

percent. Ikuta uses the effective$-$interest amortization method. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ and PVA of $$1)($Use appropriate factor$($s$)$

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 statement of earnings and the statement of financial position at the end of year $1$ and year $2?$

Complete this question by entering your answers in the tabs below.

Required $2$

Complete a bond amortization schedule for all three years of the bond's life. $($Round your intermediate calculations and final

answers to whole dollars.$)$