he following amortization and interest schedule reflects the issuance of 10-year bonds by Monty Corporation on January 1, 2014, and the subsequent interest payments and charges. The companys year-end is December 31, and financial statements are prepared once yearly.

Amortization Schedule
Year		Cash		Interest		Amount Unamortized		Carrying Value
1/1/2014						$21,143		$ 165,957
2014		$18,710		$19,915		19,938		167,162
2015		18,710		20,059		18,589		168,511
2016		18,710		20,221		17,078		170,022
2017		18,710		20,403		15,385		171,715
2018		18,710		20,606		13,489		173,611
2019		18,710		20,833		11,366		175,734
2020		18,710		21,088		8,988		178,112
2021		18,710		21,373		6,325		180,775
2022		18,710		21,693		3,342		183,758
2023		18,710		22,052				187,100

(a) Indicate whether the bonds were issued at a premium or a discount. select an option DiscountPremium (b) Indicate whether the amortization schedule is based on the straight-line method or the effective-interest method. select a method Effective interest methodStraight-line method (c) Determine the stated interest rate and the effective-interest rate. (Round answers to 0 decimal places, e.g. 18%.)

The stated rate		enter percentages rounded to 0 decimal places	%
The effective rate		enter percentages rounded to 0 decimal places	%

(d) On the basis of the schedule above, prepare the journal entry to record the issuance of the bonds on January 1, 2014. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
January 1, 2014	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount

(e) On the basis of the schedule above, prepare the journal entry to reflect the bond transactions and accruals for 2014. (Interest is paid January 1.) (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
December 31, 2014	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount

(f) On the basis of the schedule above, prepare the journal entries to reflect the bond transactions and accruals for 2021. Monty Corporation does not use reversing entries. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
choose a transaction date January 1, 2021December 31, 2021	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
choose a transaction date January 1, 2021December 31, 2021	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount