Problem 14-1 The following amortization and interest schedule reflects the issuance of 10-year bonds by Crane 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 Year Cash Interest Amount Unamortized Carrying Value 1/1/2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 $20.940 20.940 20,940 20,940 20,940 20,940 20,940 20,940 20,940 20,940 $23.528 23,916 24,362 24,876 25,466 26,145 26,926 27,824 25,856 30,049 $52,548 49.960 46,954 43,562 39,626 35,100 29,895 23,909 17,025 9,109 $ 156,852 159.440 162,416 165,838 169,774 174,300 179,505 185,491 192,375 200,291 209,400 (a) Indicate whether the bonds were issued at a premium or a discount (1) Indicate whether the amortization schedule is based on the straight-line method of the effective interest method. decimal places, e. 189.) (c) Determine the stated interest rate and the effective interest rate. (Round answers to 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. (no entry is required, select "No Entry for the account cities and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually) Date Account Tities 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 acous for 2011. (Interest is paid January 1.) If no entry is required, select "No Entry for the account titles and enter for the amounts Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit December 31, 2011 (1) On the basis of the schedule above, prepare the journal entries to reflect the bond transactions and accruals for 2018. Crane Corporation does not use reversing entries. (If no entry is required, select "Ne Entry for the account tities and enter for the amounts, Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Click if you would like to Show Work for this questioni Oon Show Work