Problem 14-1 The following amortization and interest schedule reflects the issuance of 10-year bonds by Sarasota 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 ye Amortization Schedule Year Cash Interest Amount Unamortized Carrying Value 1/1/2011 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 $11,550 11,550 11,550 11,550 11,550 11,550 11,550 11,550 11,550 11,550 $11,888 11,929 11,974 12,025 12,082 12,146 12,217 12,297 12,387 12,488 $5,933 5,595 5,216 4,792 4,317 3,785 3,189 2,522 1,775 938 $ 99,067 99,405 99,784 100,208 100,683 101,215 101,811 102,478 103,225 104,062 105,000 (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. (c) Determine the stated interest rate and the effective-interest rate. (Round answers to O decimal places, e.g. 18%.) The stated rate The effective rate d) On the basis of the schedule above, prepare the journal entry to record the issuance of the bonds on January 1, 2011. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit January 1, 2011 (e) On the basis of the schedule above, prepare the journal entry to reflect the bond transactions and accruals for 2011. (Interest is paid January 1.) (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Debit Credit Date Account Titles and Explanation December 31, 2011 (f) On the basis of the schedule above, prepare the journal entries to reflect the bond transactions and accruals for 2018. Sarasota Corporation does not use reversing entries. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit