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I need help with this problem 14-1 please Problem 14-1 The following amortization and interest schedule reflects the issuance of 10-year bonds by Waterway Corporation
I need help with this problem 14-1 please
Problem 14-1 The following amortization and interest schedule reflects the issuance of 10-year bonds by Waterway Corporation on January 1, 2011, and the subsequent interest payments and charges. The company's year-end is December 31, and financial statements are prepared once yearly Amortization Schedule Amount Unamortized Carrying Value Year Cash Interest $13,403 223,797 224,561 225,416 226,374 227,447 228,649 229,995 231,502 233,190 235,081 237,200 1/1/2011 2011 $26,092 2012 2013 2014 2015 2016 2017 2018 2019 2020 26,092 26,092 26,092 26,092 26,092 26,092 26,092 26,092 26,092 $26,856 26,947 27,050 27,165 27,294 27,438 27,599 27,780 27,983 28,211 12,639 11,784 10,826 9,753 8,551 7,205 5,698 4,010 2,119 (a) Indicate whether the bonds were issued at a premium or a discount. Discount (b) Indicate whether the amortization schedule is based on the straight-line method or the effective-interest method Effective interest methodStep by Step Solution
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