The following amortization and interest schedule reflects the issuance of 10-year bonds by Sheridan 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 $42,761 $127,639 2014 $17,040 $19,146 40,655 129,745 2015 17,040 19,462 38,233 132,167 2016 17,040 19,825 35,448 134,952 2017 17,040 20,243 32,245 138,155 2018 17,040 20,723 28,562 141,838 2019 17,040 21,276 24,326 146,074 2020 17,040 21,911 19,455 150,945 2021 17,040 22.642 13,853 156,547 2022 17,040 23,482 7,411 162,989 2023 17,040 24,451 170,400 (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, eg 10%) The stated rate The effective rate N (d) On the basis of the schedule above, prepare the journal entry to record the issuance of the bonds on January 3, 2014 f 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) 1