Problem 14-1 The following amortization and interest schedule reflects the issuance of 10-year bonds by Coronado 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 1/1/2011 2011 $19,646 2012 2013 2014 2015 2016 2017 2018 2019 2020 19,646 19,646 19,646 19,646 19,646 19,646 19,646 19,646 19,646 $20,221 20,290 20,367 20,454 20,551 20,659 20,781 20,917 21,070 21,242 $10,092 $168,508 169,083 169,727 170,448 171,256 172,161 173,174 174,309 175,580 177,004 178,600 9,517 8,873 8,152 7,344 6,439 5,426 4,291 3,020 1,596 (a) Indicate whether the bonds were issued at a premium or a discount. (b) Indicate whether the amortization schedule is based on the straight-line method or the effective-interest method