3 4 P14-1 (Analysis of Amortization Schedule and Interest Entries) The following amortization and interes schedule reflects the issuance of 10-year bonds by Capulet Corporation on January 1, 2008, and the subse. are prepared once yearly Amortization Schedule Amount Carrying Cash Interest Unamortized Year Value $5,651 5,329 4,968 4,564 4,112 3,605 3,038 2,403 1,691 894 94,349 94,671 95,032 95,436 1/1/2008 2008 $11,000 11,000 11,000 11,000 11,000 11,000 11,000 2015 11,000 2016 11.000 $11,322 11,361 11,404 11,452 11,507 11,567 11,635 11,712 11,797 11,894 2010 2011 2012 2013 2014 96,395 96,962 97,597 98,309 99,106 100,000 11,000 2017 Instructions (a) Indicate whether the bonds were issued at a premium or a discount and how you can determine this (b) Indicate whether the amortization schedule is based on the straight-line method or the effective (c) fact from the schedule. interest method, and how you can determine which method is used. Determine the stated interest rate and the effective-interest rate