The Square Foot Grill, Inc. Issued $150.000 of 10-year, 7 percent bonds on January 1. Year 1, at 102. Interest is payable In cash annually on December 31. The straight-line method is used for amortization. Required a. Use a financial statements model like the one shown below 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, affects the company's financial statements. Use + for increase, - for decrease, and if there is no effect , leave the cell blank. 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 Income statement d. Determine the carrying value of the bond liability as of December 31, Year 2 o. Determine the amount of interest expense reported on the Year 2 income statement Answer is not complete. Complete this question by entering your answers in the tabs below. Req A Reg B to E 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. Show less D c. Carrying value Year 1 Interest expense Year 1 Carrying value Year 2 Interest expense Year 2 d 0 Complete this question by entering your answers in the tabs below. Required A Required B Assume that the board of directors declares a $52,500 cash dividend at the end of Year 2 (remember that the Year 1 and Year 2 preferred dividends are due). How will the dividend be divided between the preferred and common stockholders? Distributed to Shareholders Amount Preferred Common Total dividend declared Year 1 Artearage Year 2 Preferred dividends Available for common Distributed to common Total distributon