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.

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?

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

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b$.$ Carrying value for Year $4$

c$.$ Interest expense for Year $4$

d$.$ Cash outflow for interest in Year $4$