Problem 14-1 The following amortization and interest schedule reflects the issuance of 10-year bonds by Bridgeport 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 $18,070 2012 2013 2014 2015 2016 2017 2018 2019 2020 18,070 18,070 18,070 18,070 18,070 18,070 18,070 18,070 18,070 $20,303 20,638 21,023 21,466 21,976 22,562 23,235 24,010 24,901 25,932 $45,346$135,354 137,587 140,155 143,108 146,504 150,410 154,902 160,067 166,007 172,838 180,700 43,113 40,545 37,592 34,196 30,290 25,798 20,633 14,693 7,862 (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 methood (c) Determine the stated interest rate and the effective-interest rate. (Round answers to 0 decimal places, eg, 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 ndented when amount is entered. Do not indent manual . DateAccount 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. Bridgeport 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.) Debit Credit Date Account Titles and Explanation