Exercise $10-22$A $($Algo$)$ Effective interest amortization for a bond premium LO $10-7$

On January $1,$ Year $1,$ Hart Company issued bonds with a face value of $$105,000,$ a stated rate of interest of $12$ percent, and a five$-$year term to maturity. Interest is payable in cash on December $31$ of each year. The effective rate of interest was $11$ percent at the time the bonds were issued. The bonds sold for $$108,881.$ Hart used the effective interest rate method to amortize the bond premium.

Note: Round your intermediate calculations and final answers to the nearest whole number.

Required:

Prepare an amortization table.

What is the carrying value that would appear on the Year $4$ balance sheet?

What is the interest expense that would appear on the Year $4$ income statement?

What is the amount of cash outflow for interest that would appear in the operating activities section of the Year $4$ statement of cash flows?