The following amortization and interest schedule reflects the issuance of 10-year bonds by Pina 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. Year 1/1/2014 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Amortization Schedule Amount Cash Interest Unamortized $26,399 $14,465 $15.765 25,099 14,465 15.960 23,604 14,465 16.184 21,885 14,465 16,442 19,908 14,465 16,739 17,634 14,465 17,080 15,019 14,465 17,472 12,012 14,465 17.923 8,554 14.465 18.442 4,577 14,465 19.042 Carrying Value $ 105,101 106,401 107,896 109,615 111,592 113,866 116,481 119,488 122.946 126,923 131,500 (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- ! 2017 2018 2019 2020 2021 2022 2023 14,465 14,465 14,465 14,465 14,465 14,465 14,465 16,442 16,739 17,080 17,472 17.923 18,442 19.042 19,908 17.634 15,019 12,012 8,554 4,577 111,592 113,866 116,481 119,488 122,946 126,923 131,500 (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, e.g. 18%.) The stated rate The effective rate (c) Determine the stated interest rate and the effective-interest rate. (Round answers to 0 decimal places, eg. 18%.) The stated rate % The effective rate 96 (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.) Debit Date Account Titles and Explanation 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 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) (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 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. Pina Corporation does not use reversing entries. (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 Debit (f) On the basis of the schedule above, prepare the journal entries to reflect the bond transactions and accruals for 2021. Pina 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 Save for Later Attempts: unlimited Submit
