The Square Foot Grill. Inc. Issued $184,000 of 10 year, 5 percent bonds on January 1, Year 1, at 102 . interest is payable in cash annually on December 31 . The straight-fine 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 va Iue (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 tlability as of December 31 , Year 2. e. Determine the amount of interest expense reported on the Year 2 income statement. Complete this question by entering your answers in the tabs below. 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, Use a financial statements modei like the one shown below to demonstrate how (1) the January 1, Year 1, bend issue and (2) the December Year 1, recognition of interest expense, including the amortization of the premium and the cash payment, affects the company's financial sear 1, recognition of interest expense, including the amortization of the premirm and the cash payment, affects the company's financial for increase, - for decrease, and if there is no effect, leave the cell blank. (In the Cash. Fiow column, indicate whether the statements. Use + for increase, - for decrease, and if there is no effect, leave the ceif blank, (In the Cash fiow column, indicate whedrer the temerating activity (OA), an investing activity (IA), or a financing activity (FA), and if there is no effect, leave the cell blank. Not all cells will require entry.) 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