714 of 1388 P14-1 (Analysis of Amortization Schedule and Interest Entries) The amortization and interest schedule on page 692 reflects the issuance of 10-year bonds by Capulet Corporation on January 1, 2009, and the subsequent interest payments and charges. The company's year-end is December 31, and financial state- ments are prepared once yearly. 692 Chapter 14 Non-Current Liabilities Cash Year 1/1/2009 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 11.000 11.000 11,000 11,000 11,000 11,000 11.000 11.000 11,000 11,000 Amortization Schedule Amount Interest Unamortized 5,651 11.322 5,329 11,361 4,968 11.404 4,564 11,452 4,112 11,507 3,605 11.567 3,038 11.635 2.403 11.712 1.691 11.797 894 11,894 Book Value 94,349 94,671 95,032 95,436 95,888 96,395 96,962 97.597 98,309 99,106 100,000 Instructions (a) Indicate whether the bonds were issued at a premium or a discount and how you can determine this fact from the schedule. (b) Determine the stated interest rate and the effective-interest rate. (0) On the basis of the schedule, prepare the journal entry to record the issuance of the bonds on January 1, 2009. (d) On the basis of the schedule, prepare the journal entry or entries to reflect the bond transactions and accruals for 2009. (Interest is paid January 1.) (e) On the basis of the schedule, prepare the journal entry or entries to reflect the bond transactions and accruals for 2016. Capulet Corporation does not use reversing entries