None Exercise 10-22A (Algo) Effective interest amortization for a bond premium LO 10-7On January 1, Year 1, Hart Company issued bonds with a face value of $117,000, a stated rate of interest of 10 percent, and a five-yearterm to maturity. Interest is payable in cash on December 31 of each year. The effective rate of interest was 9 percent at the time thebonds were issued. The bonds sold for $121,551. Hart used the effective interest rate method to amortize the bond premium.Note: Round your intermediate calculations and final answers to the nearest whole number.Required:a. Prepare an amortization table.DateCashInterest PremiumPayment Expense AmortizationCarryingValueJanuary 1, Year 1December 31, Year 1December 31, Year 2$ 11,700 $ 10,940 $760$ 121,551120,791December 31, Year 3December 31, Year 4December 31, Year 5Totalsb. 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 cashflows?b. Carrying value on the Year 4c. Interest expense for Year 4d. Cash outflow for interest in Year 4

The bonds are the long-term liabilities of the business. The bonds are issued to raise the money…

Exercise 10-22A (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 $117,000, a stated rate of interest of 10 percent, and a five-year erm 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 $121,551. 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: a. Prepare an amortization table. Date Cash Interest Premium Carrying