The following amortization and interest schedule reflects the issuance of 10 -year bonds by Culver 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. (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 ploces, es. 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. (e) On the basis of the schedule above. prepare the journal entry to reflect the bond transactions and accruais for 2014. (interest is paid January 1) (lf no entry is required, select "No Entry" for the account tities and enter Ofor the amounts Credit account tities are automatically indented when amount is entered. Do not indent manually) (f) On the basis of the schedule above, prepare the journal entries to reflect the bond transactions and accruals for 2021. Culver 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.) The following amortization and interest schedule reflects the issuance of 10 -year bonds by Culver 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. (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 ploces, es. 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. (e) On the basis of the schedule above. prepare the journal entry to reflect the bond transactions and accruais for 2014. (interest is paid January 1) (lf no entry is required, select "No Entry" for the account tities and enter Ofor the amounts Credit account tities are automatically indented when amount is entered. Do not indent manually) (f) On the basis of the schedule above, prepare the journal entries to reflect the bond transactions and accruals for 2021. Culver 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.)
