The following amortization and interest schedule reflects the issuance of 10-year bonds by Waterway 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 Year Cash Interest Amount Unamortized Carrying Value 1/1/2014 $13.233 $103,867 2014 $11,710 $12,464 12,479 104,621 2015 11,710 12,555 11,634 105,466 2016 11,710 12,656 10,688 106,412 2017 11,710 12,769 9,629 107,471 2018 11,710 12,897 8,442 108,658 2019 11,710 13,039 7.113 109.987 2020 11.710 13,198 5,625 111,475 2021 11,710 13,377 3,958 113,142 2022 11,710 13,577 2,091 115,009 2023 11.710 13,801 117,100 2022 11,710 13,577 2,091 115,009 2023 11,710 13,801 117.100 (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 O 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 O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) (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 O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date January 1, 2014 Account Titles and Explanation Debit Credit (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 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) (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 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date December 31, 2014 Account Titles and Explanation Debit Credit (f) On the basis of the schedule above, prepare the journal entries to reflect the bond transactions and accruals for 2021. Waterway 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 List of Accounts Account Titles and Explanation Debit Credit