Problem 14-1 Your answer is partially correct. Try again. The following amortization and interest schedule reflects the issuance of 10-year bonds by Sage 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. Schedule Carrying Value Year Cash Interest 552,473 S156,627 159,211 162,183 165,600 169,530 174,050 179,248 185,225 192,099 200,004 209,100 1/1/2011 2011 $20,910 2012 2013 2014 20,910 2015 2016 2017 20,910 2018 20,910 2019 20,910 2020 $23,494 23,882 24,327 24,840 25,430 26,108 26,887 27,784 28,815 30,006 49,889 46,917 43,500 39,570 35,050 29,852 23,875 17,001 9,096 20,910 20,910 20,910 20,910 20,910 (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. ective interest meth (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 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, 2011as (e) On the basis of the schedule above, prepare the joumal 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 xplanation Debit Credit December 31, 2011 TInterest Ex iscount on Bonds Payabl Interest Payabl (f) On the basis of the schedule above, prepare the journal entries to reflect the bond transactions and accruals for 2018. Sage 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