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 $$126,000,$ a stated rate of interest of $10$ percent, and a five$-$year term to maturity. Interest is payable in cash on December $31$ of each year. The effective rate of interest was $9$ percent at the time the bonds were issued. The bonds sold for $$130,901.$ Hart used the effective interest rate method to amortize the bond premium.

Required

a$.$ Prepare an amortization table.

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

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

d$.$ 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?

Complete this question by entering your answers in the tabs below.

Req A

Req B to D

Prepare an amortization table.

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

$\backslash$table$[[$Date$,\backslash$table$[[$Cash$],[$Payment$]],\backslash$table$[[$Interest$],[$Expense$]],\backslash$table$[[$Premium$],[$Amortization$]],\backslash$table$[[$Carrying$],[$Value$]]],[$January $1,$ Year $1,,,,130,901],[$December $31,$ Year $1,12,600,11,781,819,130,082],[$December $31,$ Year $2,,,,],[$December $31,$ Year $3,,,,],[$December $31,$ Year $4,,,,],[$December $31,$ Year $5,,,,],[$Totals$,12,600,11,781,,]]$