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 companys year-end is December 31, and financial statements are prepared once yearly. Amortization Schedule Year Cash Interest Amount Unamortized Carrying Value 1/1/2011 $43,112 $ 128,688 2011 $17,180 $19,303 40,989 130,811 2012 17,180 19,622 38,547 133,253 2013 17,180 19,988 35,739 136,061 2014 17,180 20,409 32,510 139,290 2015 17,180 20,894 28,796 143,004 2016 17,180 21,451 24,525 147,275 2017 17,180 22,091 19,614 152,186 2018 17,180 22,828 13,966 157,834 2019 17,180 23,675 7,471 164,329 2020 17,180 24,651 171,800 (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 0 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 0 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 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 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 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS LINK TO TEXT

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 yearly. Amortization Schedule Amount Unamortized Carrying Value Year Cash Interest 1/1/2011 $43,112 $ 128,688 2011 $19,303 40,989 130,811 2012 38,547 133,253 $17,180 17,180 17,180 17,180 19,622 19,988 2013 35,739 136,061 2014 20,409 32,510 139,290 2015 17,180 28,796 143,004 20,894 21,451 2016 17,180 24,525 147,275 2017 17,180 22,091 19,614 152,186 2018 17,180 22,828 13,966 157,834 2019 17,180 23,675 7,471 164,329 2020 17,180 24,651 171,800 (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" Eles 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 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 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit