The following amortization and interest schedule reflects the issuance of 10-year bonds by Sheffield 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 Amount Interest Unamortized Carrying Value 1/1/2014 $55,885 $166,815 2014 $22,270 $25,022 53,133 169,567 2015 22,270 25,435 49,968 172,732 2016 22,270 25,910 46,328 176,372 2017 22,270 26,456 42,142 180,558 2018 22,270 27,084 37,328 185,372 2019 22,270 27,806 31,792 190,908 2020 22,270 28,636 25,426 197,274 2021 22,270 29,591 18,105 204,595 2022 22,270 30,689 9,686 213,014 2023 22,270 31,956 222,700 (a) Indicate whether the bonds were issued at a premium or a discount. Discount (b) Indicate whether the amortization schedule is based on the straight-line method or the effective-interest method. 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.) Date Account Titles and Explanation January 1, 2014 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 O for the amounts. Credit account titles are