The following amortization and interest schedule is for the issuance of 10-year bonds by Pina Colada Corporation on January 1, 2020, and the subsequent interest payments and charges. The companys year end is December 31 and it prepares its financial statements yearly.

Amortization Schedule
							Amount			Carrying
Year			Cash		Interest		Unamortized			Amount
Jan. 1,	2020						$5,069			$95,931
Dec. 31,	2020		$14,140		$14,390		4,819			96,181
	2021		14,140		14,427		4,532			96,468
	2022		14,140		14,470		4,202			96,798
	2023		14,140		14,520		3,822			97,178
	2024		14,140		14,577		3,385			97,615
	2025		14,140		14,642		2,883			98,117
	2026		14,140		14,718		2,305			98,695
	2027		14,140		14,804		1,641			99,359
	2028		14,140		14,904		877			100,123
	2029		14,140		15,017		0			$101,000

Determine the stated interest rate and the effective interest rate. (Round answers to 0 decimal places, e.g. 15%.)

Stated Interest Rate		%
Effective Interest Rate		%

eTextbook and Media

List of Accounts

Based on the schedule above, prepare the journal entry to record the issuance of the bonds on January 1, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 1, 2020

eTextbook and Media

List of Accounts

Based on the schedule above, prepare the journal entry to reflect the bond transactions and accruals for 2020. (Interest is paid January 1.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 31, 2020

eTextbook and Media

List of Accounts

Based on the schedule above, prepare the journal entries to reflect the bond transactions and accruals for 2028. Pina Colada Corporation does not use reversing entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 1, 2028Dec. 31, 2028
Jan. 1, 2028Dec. 31, 2028

eTextbook and Media

List of Accounts