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The following amortization and interest schedule reflects the issuance of 10-year bonds by Teal Corporation on January 1, 2014, and the subsequent interest payments and

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The following amortization and interest schedule reflects the issuance of 10-year bonds by Teal 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 $ 13,041 $ 217,759 2014 $ 25,388 $26.131 12,298 218,502 2015 25,388 26,220 11.466 219,334 2016 25,388 26,320 10,534 220,266 2017 25,388 26.432 9,490 221,310 2018 25,388 26,557 8,321 222,479 2019 25,388 26,697 7,012 223,788 2020 25,388 26,855 5,545 225.255 2021 25,388 27.031 3,902 226,898 2022 25,388 27 228 2,062 228,738 2023 25,388 27.450 230,800 (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 decimal places, eg. 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 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 I (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 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Date December 31 2014 (f) On the basis of the schedule above, prepare the journal entries to reflect the bond transactions and accruals for 2021. Teal Corporation does not use reversing entries. (If no entry is required, select "No Entry" for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually) Date Account Titles and Explanation Debit Credit

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