On January 1 of this year, Ikuta Company issued a bond with a face value of $155,000 and a coupon rate of 7 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 8 percent. Ikuta 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:

1. Complete a bond amortization schedule for all three years of the bond's life.

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

Required 1:

Complete a bond amortization schedule for all three years of the bond's life.

Note: Round your intermediate calculations and final answers to whole dollars.

Date	Cash Interest	Interest Expense	Amortization	Book Value of Bond
January 01, Year 1
December 31, Year 1
December 31, Year 2
December 31, Year 3

Required 2:

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

Note: Round your intermediate calculations and final answers to whole dollars.

December 31	Year 1	Year 2
Income statement:
Interest expense
Balance Sheet:
Bonds payable