Problem 14-1 The foloving amortization and interest schedule reflects the issuance of 10-year bonds by Concord Corporation on January 1, 2011 and the subsequent interest payments and charges. The companys yearend is December 31 d financial statement: are prepared once yearly Amortization Schedule Carrying Cash Unamortized Year nterest Value $46,299 138,201 1/1/2011 2011 $18,450 $20,730 44,019 140,401 2012 18,450 21,072 41,397 143,103 2013 21,465 38,382 146,118 18,450 2014 18,450 21,919 34,914 149,596 30,926 153,574 2015 18,450 22,438 158,160 2016 18'450 23,036 26,340 2017 18,450 23,724 21,066 163,434 2018 18,450 24,515 15,001 169,499 2019 18'450 25.425 8,026 176,474 2020 18,450 26,476 184,500 (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 ofthe 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.) Account Titles and Explanation January 1, 2011