Check my work 3 5 points 2 Exercise 10-14A (Algo) Straight-line amortization of a bond discount LO 10-4 Diaz Company issued bonds with a $117.000 face value on January 1 Year 1 The bonds had a 5 percent stated rate of interest and a 10 year term. Interest is paid in cash annually, beginning December 31 Year 1 The bonds were issued at 98. The straight line method is used for amortization Required a.Use a financial statements model like the one shown next to demonstrate how the January 1 Year 1, bond issue and the December 31 Year 1. recognition of interest expense, including the amortization of the discount and the cash payment affect the company's financial statements (Use for increase or for decrease. In the Statement of Cash Flows column, use the initials OA to designate operating activity, IA for investing activity, and FA for financing activity. Not all cells require input.) Print Erect of Transactions on Financial Statement Balance Sheet Income Statement Bloch Liabili Equity Revenue Expense - Ne Income Matement of Cash Flowe Event Ansat 1 2 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 (face value less discount or plus premium) of the bond liability as of December 31, Year 2 e. Determine the amount of interest expense reported on the Year 2 income statement. b. Carrying value C. Interest expense d. Carrying value e. Interest expense