The Square Foot Grill, Incorporated issted $171,000 of 10-year, 8 percent bonds on January 1, Year 2, at 102. Interest is payable cash annually on December 31 . The straight-ine method is used for amortization. Required a. Use a financial statements model to demonstrate how (1) the January 1, Year 2, bond issue and (2) the December 31 , Year 2. recognition of interest expense, including the amortization of the premium and the cash payment, affects the company's financial statements. b. Determine the carrying value (face value less discount or plus premium) of the bond liability as of December 31 , Year 2 . c. Determine the amount of interest expense reported on the Year 2 income statement. d. Determine the carrying value of the bond liability as of December 31 , Year 3 . e. Determine the amount of interest expense reported on the Year 3 income statement. Use a financial statements model to demonstrate how (1) the January 1 , Year 2 , bond issue and (2) the December 31 , Year 2 , recognitic interest expense, including the amortization of the premium and the cash payment, affects the company's financial statements. Note: Use + for increase or - for decrease. In the Statement of Cash Flows column, use the initials OA to designate operating activity, L. investing activity, and FA for financing activity. Not all cells require input. Determine the carrying value (face value less discount or plus premium) of the bond liability as of December 31 , Year 2 . Determine the amount of interest expense reported on the Year 2 income statement. Determine the carrying value of the bond liability as of December 31 , Year 3 . Determine the amount of interest expense reported on the Year 3 income statement