P14-10 (L03,4) (Analysis of Amortization Schedule and Interest Entries) The following amortization and interest schedule reflects the issuance of & year bands by Hammerhead Corporation on January 1. 2013, and the subsequent interest payments: Amortization Schedule Carrying Your Cash Value 1/1/2013 $16,158 5265.156 ENDE 515 000 $13 3OH 14,465 264,465 2014 15,000 13,273 2015 15,000 13 134 10824 2601524 2016 15,000 13/041 8.955 2017 15,000 12943 5.808 256,505 2018 15,000 12,840 4,649 2019 15,000 12 732 2341 252 3HI 2020 15000 12,619 250 010 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, 2013. (e) On the basis of the schedule above, prepare the journal entry or entries to reflect the band transactions and accruals for 2013. (Interest is paid January 1.) (f) On the basis of the schedule above, prepare the journal entry or entries to reflect the band transactions and accruals for 2018. Hammerhead Corporation does not use reversing entries