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The Square Foot Grill incorporated issued $209,000 of 10-year, 7 percent bonds on January 1, Year 2, at 102. Interest is payable in cash annually on December 31 . The straight-line method is used for amortization. Required a. Use a financial statements model to demonstrate how (1) the January 1. Year 2, bond issue and (2) the December 31 , Year 2. recognition of interest expense, including the amortization of the premium and the cash payment, affects the compamy's financial statements. b. Determine the carfying value (face value lest discount or plas premium) of the bond liability as of December 31 , Year 2 . c. Determine the amount of interest expense reported on the Year 2 income statement. d. Determine the carrying value of the bond lability as of December 31. Year 3. e. Determine the amount of interest expense reported on the Year 3 income statement. Complete this question by entering your answers in the tabs below. Use a financial statements model to dernorstrate how (1) the lamaary 1, Year 2, bond issue and (2) the December a1, Year 2, recognition of interest expense, including the amortization of the premium and the cash payment alfects the comgany's financial statements. Notei Use + for increate or - for decrease, In the Statement of Cash floves column, ise the initals of to designate operating activity. IA for inyesting activity: and FA for financing activity. Mot all celly require input. Complete this question by entering your answers in the tabs below. Determine the carrying value (face value less discount or plus premium) of the bond liability as of December 31 , Year 2. Determine the amount of interest expense reported on the Year 2 income statement. Determine the carrying value of the bond liability as of December 31, Year 3. Determine the amount of interest expense reported on the Year 3 income statement

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