Problem 7-38A (Algo) Effective interest amortization for a bond premium (Appendix) LO 7-12 On January 1, Year 1, Reese Incorporated issued bonds with a face value of $180,000, a stated rate of Interest of 8 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 7 percent at the time the bonds were issued. The bonds sold for $187,380. Reese used the effective Interest rate method to amortize bond premlum. Required a. Prepare an amortization table. b. What Item in the table would appear on the Year 3 balance sheet? c. What item in the table would appear on the Year 3 Income statement? d. What item and amount in the table would appear on the Year 3 statement of cash flows (Direct Method) and under which section of the statement of cash flows would this item appear? (For all requirements, round Intermediate calculations and final answers to the nearest whole dollar amount.) Complete this question by entering your answers in the tabs below. Reg A Req B to D Prepare an amortization table. Amortization Schedule Cash Interest Payment Expense Date Premium Amortization Carrying Value 187,380 186,097 14,400 13, 117 1,283 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 Req A Req B to D > Problem 7-38A (Algo) Effective interest amortization for a bond premium (Appendix) LO 7-12 On January 1, Year 1, Reese Incorporated issued bonds with a face value of $180,000, a stated rate of Interest of 8 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 7 percent at the time the bonds were issued. The bonds sold for $187,380. Reese used the effective Interest rate method to amortize bond premlum. Required a. Prepare an amortization table. b. What Item in the table would appear on the Year 3 balance sheet? c. What item in the table would appear on the Year 3 Income statement? d. What Item and amount in the table would appear on the Year 3 statement of cash flows (Direct Method) and under which section of the statement of cash flows would this item appear? (For all requirements, round Intermediate calculations and final answers to the nearest whole dollar amount.) Complete this question by entering your answers in the tabs below. Req A Req B to D b. What item in the table would appear on the Year 3 balance sheet? c. What item in the table would appear on the Year 3 income statement? d. What item and amount in the table would appear on the Year 3 statement of cash flows (Direct Method) and under which section of the statement of cash flows would this item appear? Show less b. C. d.