The following amortization and interest schedule reflects the issuance of 10-year bonds by Flounder 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.

(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 places, e.g. 18%.)

Year 1/1/2014 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Amortization Schedule Amount Cash Interest Unamortized $22,794 $20,170 $21,469 21,495 20,170 21,625 20,040 20,170 21,799 18,411 20,170 21,995 16,586 20,170 22,214 14,542 20,170 22,459 12,253 20,170 22,734 9,689 20,170 23,041 6,818 20,170 23,386 3,602 20,170 23,772 Carrying Value $ 178,906 180,205 181,660 183,289 185,114 187,158 189,447 192,011 194,882 198,098 201,700 (d) On the basis of the schedule above, prepare the journal entry to record the issuance of the bonds on January 1, 2014. (It 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.) Account Titles and Explanation Debit Credit Date January 1, 2014 (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 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. Flounder 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