MBTA Corporation issued bonds and received cash in full for the issue price. The bonds were dated and issued on January 1, 2014. The stated interest rate was payable at the end of each year. The bonds mature at the end of four years. The following schedule has been completed (amounts in thousands):

Date

Cash

Interest

Amortization

Balance

January 1, 2014

$

48,948

End of Year 2014

$

3,610

$

3,422

$

228

48,720

End of Year 2015

3,650

?

?

48,480

End of Year 2016

3,650

?

?

?

End of Year 2017

3,650

?

?

48,000

Required:

1.

Complete the amortization schedule. (Round your Interest percent to nearest whole number.)

Date	Cash	Interest	Amortization	Balance
January 1, 2014				$48,948
End of Year 2014	$3,610	$3,422	$228	$48,720
End of Year 2015	$3,650			$48,480
End of Year 2016	$3,650
End of Year 2017	$3,650			$48,000

3.	How much cash was received at the date of issuance (sale) of the bonds? (Enter your answers in thousands.)

4.	Was there a premium or a discount? If so, which and how much? (Enter your answer in thousands.)

7.

What is the stated rate of interest? (Enter your answer as a percentage rounded to 1 decimal place (i.e. 0.123 should be entered as 12.3).)

8.

What is the effective rate of interest? (Enter your answer as a percentage rounded to the nearest whole percent (i.e. 0.123 should be entered as 12).)

9.

What amount of interest expense should be reported on the income statement each year? (Enter your answers in thousands.)

10.	How the bonds should be reported on the balance sheet at the end of each year (show the last year immediately before retirement of the bonds). (Enter your answers in thousands.)