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On January 1, Year 1, Hart Company issued bonds with a face value of $122,000, a stated rate of interest of 15 percent, and a

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On January 1, Year 1, Hart Company issued bonds with a face value of $122,000, a stated rate of interest of 15 percent, and a five-year term to maturity . Interest is payable in cash on December 31 of each year. The effective rate of interest was 14 percent at the time the bonds were issued. The bonds sold for $126,188. Hart used the effective interest rate method to amortize the bond premium (Round your intermediate calculations and final answers to the nearest whole number.) Required a. Prepare an amortization table, Date Cash Payment Interest Expense Premium Amortization Carrying Value 126,188 125,555 18,300 17,666 634 January 1, Year 1 December 31, Year 1 December 31, Year 2 December 31. Year 3 December 31, Year 4 December 31, Year 5 Totals b. What is the carrying value that would appear on the Year 4 balance sheet? c. What is the interest expense that would appear on the Year 4 income statement? d. What is the amount of cash outflow for Interest that would appear in the operating activities section of the Year 4 statement of cash flows? b. Carrying value on the Year 4 6. Interest expense for Your 4 d. Cash outflow for interest in Year 4

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