P$13\mathrm{.}1$B $($LO $1)($Analysis of Amortization Schedule and Interest Entries$)$ The following amor$-$

tization and interest schedule reflects the issuance of $8-$year bonds by Hammerhead Corporation on

January $1,2021,$ and the subsequent interest payments:

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$.$ Indicate whether the amortization schedule is based on the straight$-$line method or the effective$-$

interest method and how you can determine which method is used.

c$.$ Determine the stated interest rate and the effective$-$interest rate.

d$.$ On the basis of the schedule above, prepare the journal entry to record the issuance of the bonds on

January $1,2021.$

e$.$ On the basis of the schedule above, prepare the journal entry or entries to reflect the bond transac$-$

tions and accruals for $2021.($Interest is paid January $1.)$

f$.$ On the basis of the schedule above, prepare the journal entry or entries to reflect the bond transac$-$

tions and accruals for $2026.$ Hammerhead Corporation does not use reversing entries.