Stuart Company issued bonds with a face value of $173,000 on January 1, Year 1 . The bonds had a stated interest rate of 6 percent and a five-year term. Interest is paid in cash annually, beginning December 31 , Year 1 . The bonds were issued at 101. The straight-line method is used for amortization. Required a. Use a financial statements model to demonstrate how (1) the January 1, Year 1, bond issue and (2) the December 31 , Year 1 , recognition of interest expense, including the amortization of the premium and the cash payment, affect the company's financial statements. Use + for increase, - for decrease, and leave blank for not affected. b. Determine the carrying value (face value less discount or plus premium) of the bond liability as of December 31 , Year 1. c. Determine the amount of interest expense reported on the Year 1 income statement. d. Determine the carrying value of the bond liability as of December 31, Year 2. e. Determine the amount of interest expense reported on the Year 2 income statement. Effect of Transactions on Financial Statements