Problem $10-3$ Amortization of Premium

Assume the same set of facts for Stacy Company as in Problem $10-2$ except that the market rate of interest of January $1,2016,$ is $8\%$ and the proceeds from the bond issuance equal $$10,799.$

Required

Prepare a five$-$year table $($similar to Exhibit $10-5)$ to amortize the premium using the effective interest method.

What is the total interest expense over the life of the bonds? cash interest payment: premium amortization?

Prepare the journal entry for the payment of interest and the amortization of premium on December $31,2018($the third year$),$ and determine the balance sheet presentation of the bonds on that date. Can you Help show the formulas and the math to the answer?