Question 5 of 5 -/1 E View Policies Current Attempt in Progress The following amortization and interest schedule reflects the issuance of 10-year bonds by Novak 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 Amount Unamortized Carrying Value Year Cash Interest 1/1/2014 $62,058 $ 185,242 2014 $24.730 $27.786 59,082 188,298 2015 24,730 28,245 55,487 191,813 2016 24.730 28,772 51.445 195,855 2017 24,730 29,378 46,797 200,503 2018 24,730 30.075 41,452 205,848 2019 24,730 30,877 35.305 211,995 2020 24,730 31.799 28,236 219,064 2021 24.730 32.860 20.106 227.194 2022 24.730 34.079 10,757 236,543 2023 24,730 35.487 247.300 (a) Indicate whether the bonds were issued at a premium or a discount. Discount (b) Indicate whether the amortization schedule is based on the straight-line method or the effective-interest method. Effective interest method (c) Determine the stated interest rate and the effective-interest rate. (Round answers to decimal places, eg, 18%) The stated rate 16 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. (I 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 Debit Credit January 1 2014 = Question 5 of 5 71 (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 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 Date January 1, 2014 (e) On the basis of the schedule above, prepare the journal entry to reflect the bond transactions and accruals for 2014. (Interestis paid January 1.)(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 Date December 31, 2014 (e) On the basis of the schedule above, prepare the journal entry to reflect the bond transactions and accruals for 2014. (Interestis paid January 1.) of 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 Date December 31 2014 (1 On the basis of the schedule above, prepare the journal entries to reflect the bond transactions and accruals for 2021. Novak Corporation does not use reversing entries . Of 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 Debit Credit (On the basis of the schedule above, prepare the journal entries to reflect the bond transactions and accruals for 2021. Novak 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 Debit Credit e Textbook and Media List of Accounts Attempts: 0 of 3 used Submit Answer Save for Later Last saved 1 day ago Saved work will be auto-submitted on the due date. Auto: Submission can take up to 10 minutes
