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 companys year-end is December 31, and financial statements are prepared once yearly.

Amortization Schedule
Year		Cash		Interest		Amount Unamortized		Carrying Value
1/1/2014						$25,879		$ 203,121
2014		$22,900		$24,375		24,404		204,596
2015		22,900		24,552		22,752		206,248
2016		22,900		24,750		20,902		208,098
2017		22,900		24,972		18,830		210,170
2018		22,900		25,220		16,510		212,490
2019		22,900		25,499		13,911		215,089
2020		22,900		25,811		11,000		218,000
2021		22,900		26,160		7,740		221,260
2022		22,900		26,551		4,089		224,911
2023		22,900		26,989				229,000

(a) Indicate whether the bonds were issued at a premium or a discount. select an option (b) Indicate whether the amortization schedule is based on the straight-line method or the effective-interest method. select a method (c) Determine the stated interest rate and the effective-interest rate. (Round answers to 0 decimal places, e.g. 18%.)

The stated rate		enter percentages rounded to 0 decimal places	%
The effective rate		enter percentages rounded to 0 decimal places	%

(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 0 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	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount

(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	Account Titles and Explanation	Debit	Credit
December 31, 2014	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount

(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 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
choose a transaction date

	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
choose a transaction date

	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount