Question 3 of 5 -11 View Policies Current Attempt in Progress The following amortization and interest schedule reflects the issuance of 10-year bonds by Riverbed Corporation on January 1, 2014, and the subsequent interest payments and charges. The company's year-end is December 31, and financial statements are prepared once yearly. Amortization Schedule Cash Interest Year 1/1/2014 2014 2015 2016 Amount Unamortized $21.234 20,024 18,669 Carrying Value $ 166,666 167,876 $20,000 20,145 2017 2018 2019 2020 2021 2022 $18,790 18,790 18,790 18,790 18,790 18.790 18.790 18,790 18,790 18.790 20,308 20,490 20,694 20.922 21,178 21,465 21,786 22,146 17.151 15,451 13,547 11,415 9,027 6,352 3,356 169,231 170,749 172,449 174,353 176,485 178,873 181,548 184,544 187,900 2023 (a) Indicate whether the bonds were issued at a premium or a discount. + Homework Chapter 14 Question 3 of 5 -/1 E (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, 2014. (If no entry is required, select "No Entry" for the acco titles and enter 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. 2014 (e) On the basis of the schedule above, prepare the journal entry to reflect the bond transactions and accruals for 2014. (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 Date December Debit Credit uestion 3 of 5 -/1 E Credit Debit Account Titles and Explanation Date December 31, 2014 (f) On the basis of the schedule above, prepare the journal entries to reflect the bond transactions and accruals for 2021. Riverbed Corporation does not use reversing entries. (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.) Date Account Titles and Explanation Credit Debit e Textbook and Media List of Accounts Submit Answer Attempts: 0 of 3 used Save for Later