P14-3 The following amortization and interest schedule is for the issuance of 10-year bonds by Capulet Corporation on January 1, 2017 and the subsequent interest payments and charges. The company's year end is December 31 and it prepares its financial statements yearly. Year Jan. 1, 2017 Dec.31,2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Instructions Amortization Schedule Cash Interest Amount Unamortized $5,651 $11,000 $11,322 5,329 11,000 11,361 4,968 11,000 11,404 4,564 11,000 11,452 4,112 11,000 11,507 3,605 11,000 11,567 3,038 11,000 11,635 2,403 11,000 11,712 1,691 11,000 11,797 894 11,000 11,894-0- Carrying Amount $ 94,349 94,671 95,032 95,436 95,888 96,395 96,962 97,597 98,309 99,106 $100,000 FINANCE (a) Indicate whether the bonds were issued at a premium or a discount and explain 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 explain how you can determine which method is used. Are both amortization methods accepted for financial reporting purposes? (c) Determine the stated interest rate and the effective interest rate. (d) Based on the schedule above, prepare the journal entry to record the issuance of the bonds