The following amortization and interest schedule reflects the issuance of 10-year bonds by Bramble Corporation on Januar 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 Year Cash Interest Amount Unamortized Carrying Value 1/1/2014 $11,053 $184,547 2014 $21,516 $22,146 10,423 185,177 2015 21,516 22,221 9,718 185,882 2016 21,516 22,306 8,928 186,672 2017 21,516 22,401 8,043 187,557 2018 21,516 22,507 188,548 2019 21,516 22,626 5,942 189,658 2020 21,516 22,759 4,699 190,901 2021 21,516 22,908 3,307 192,293 2022 21,516 23,075 1,748 193,852 Amortization Schedule Amount Unamortized Carrying Value Year Cash Interest 1/1/2014 $11,053 $184,547 2014 $21,516 $22,146 10,423 185,177 2015 21,516 22,221 9,718 185,882 2016 21,516 22,306 8,928 186,672 2017 21,516 22,401 8,043 187,557 2018 21,516 22,507 7,052 188,548 2019 21,516 22,626 5,942 189,658 2020 21,516 22,759 4,699 190,901 21,516 22,908 3,307 192,293 2021 2022 21,516 23,075 1,748 193,852 2023 21,516 23,264 195,600 (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 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.) 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.) Date Account Titles and Explanation Debit Credit December 31, 2014 (f) On the basis of the schedule above, prepare the journal entries to reflect the bond transactions and accruals for 2021. Bramble Corporation does not use reversing entries. (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 Cret
