On January 1 of this year, Ikuta Company issued a bond with a face value of $135,000 and a coupon rate of 7 percent. The bond matures in 3 years and pays Interest every December 31. When the bond was issued, the annual market rate of interest was 8 percent Ikuta uses the effective interest amortization method. (FV of $1. Py of S1, EVA of 51, and PVA 051) (Use the appropriate factors from the tables provided. Round your answers to whole dollars.) Required: 1. Complete a bond amortization schedule for all three years of the bond's life Date Cash Interest Interest Expense Amortization Book Value of Bond Jan. 01. Year 1 Dec. 31, Year 1 Dec. 31, Year 2 Dec 31, Year 3 2. What amounts will be reported on the income statement and balance sheet at the end of Year 1 and Year 2? Year 1 Year 2 December 31 Interest expense Bonds payable